2014

Wyndham Worldwide Reports Second Quarter 2013 Earnings Second Quarter Adjusted EPS Up 13% Year-Over-Year

Share Repurchase Authorization Increased

Raised Full Year EPS Guidance

PARSIPPANY, N.J., July 24, 2013 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended June 30, 2013. 

Highlights:

  • Second quarter diluted earnings per share (EPS) was $0.98 on both a reported and adjusted basis, an increase of 13% from adjusted diluted EPS of $0.87 in the second quarter of 2012.  Reported diluted EPS was $0.88 in the second quarter of 2012.
  • Revenues increased 10% from the prior-year period.
  • Free cash flow increased 15% for the six months ended June 30, 2013, compared with the same period in 2012.  Net cash provided by operating activities increased 17% over the same period.
  • During the quarter, the Company repurchased 2.9 million shares of its common stock for $175 million.
  • The Company announced today that its Board of Directors approved a $750 million increase in the share repurchase authorization, bringing the available authorization to $874 million.
  • On July 23, 2013, the Company completed a term securitization transaction involving the issuance of $325 million of asset-backed notes with a 2.68% weighted average coupon and a 98% advance rate.

"We once again delivered strong results this quarter, reflecting great operating momentum and disciplined capital allocation," said Stephen P. Holmes, chairman and CEO.  "This winning combination, along with continued innovation and a commitment to customer service, has enabled us to achieve outstanding results for our shareholders during our seven years as a public company, which is an anniversary we mark next week.  The decision by our Board of Directors to increase our share repurchase authorization is evidence of our confidence that this powerful formula will continue to deliver and create value."

SECOND QUARTER 2013 OPERATING RESULTS

Second quarter revenues were $1.3 billion, an increase of 10% from the prior year period.  The increase reflects strong growth across all of the Company's business segments.

Second quarter net income was $133 million, or $0.98 per diluted share, compared with $128 million, or $0.87 per adjusted diluted share for the same period in 2012.  Reported diluted EPS was $0.88 in the second quarter of 2012.  The increase in net income reflects stronger operating results in all of the Company's segments.  EPS also benefited from the Company's share repurchase program.

Free cash flow was $654 million for the six months ended June 30, 2013, compared with $569 million for the same period in 2012, a 15% increase.  The growth of free cash flow largely reflects favorable working capital timing.  The Company defines free cash flow as net cash provided by operating activities less capital expenditures.  For the six months ended June 30, 2013, net cash provided by operating activities was $758 million, compared with $647 million in the prior year period. 

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)
Revenues were $262 million in the second quarter of 2013, a 12% increase over the second quarter of 2012.  The increase reflects higher hotel management reimbursable fees and revenues associated with the Company's owned hotels. 

Domestic RevPAR increased 5.3% compared with the second quarter of 2012.  Total system-wide RevPAR increased 2.1%, reflecting proportionally higher growth of lower RevPAR hotels in China. 

Adjusted EBITDA for the second quarter of 2013 was $78 million, a 5% increase compared with the second quarter of 2012.  The increase was primarily due to higher royalties and ancillary fees.

As of June 30, 2013, the Company's hotel system consisted of approximately 7,410 properties and over 635,100 rooms, a 4.4% room increase compared with the second quarter of 2012.  The development pipeline included over 940 hotels and approximately 112,000 rooms, of which 57% were international and 62% were new construction.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)
Revenues were $376 million in the second quarter of 2013, an 8% increase over the second quarter of 2012.  In constant currency and excluding the impact of acquisitions, revenues increased 4%.

Exchange revenues were $168 million, an increase of 4% compared with the second quarter of 2012.  Exchange revenue per member increased 3.0%, while the average number of members remained flat. 

Vacation rental revenues were $192 million, a 13% increase compared with the second quarter of 2012.  Excluding acquisitions, vacation rental revenues were up 5%, reflecting a 4.0% increase in the average net price per vacation rental and a 1.2% increase in transaction volume.  

EBITDA for the second quarter of 2013 was $85 million, a 4% increase over the second quarter of 2012. 

Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $630 million in the second quarter of 2013, an 11% increase over the second quarter of 2012, primarily reflecting higher gross VOI sales and the acquisition of Shell Vacations Club. 

Gross VOI sales were $481 million in the second quarter of 2013, an increase of 5% over the second quarter of 2012, primarily reflecting a 10.8% increase in tour flow offset by a 4.4% decrease in volume per guest.  Excluding Shell Vacations Club, volume per guest decreased 2.7%.

EBITDA for the second quarter of 2013 was $161 million, a 7% increase compared with the second quarter of 2012.  The increase was primarily due to higher gross VOI sales, a lower loan loss provision and lower operating costs.

Other Items

  • The Company repurchased 2.9 million shares of common stock for $175 million during the second quarter of 2013.  From July 1 through July 23, 2013, the Company repurchased an additional 1.2 million shares for $68 million.  The Company's new share repurchase authorization totals $874 million.
  • Net interest expense in the second quarter of 2013 was $32 million, compared with $30 million in the second quarter of 2012, due to higher debt levels.
  • On July 23, 2013, the Company completed a term securitization transaction involving the issuance of $325 million of asset-backed notes. Sierra Timeshare 2013-2 Receivables Funding LLC issued $226 million of A rated notes, $62 million of BBB rated notes and $37 million of BB rated notes.  The notes had a 2.68% weighted average coupon and a 98% advance rate.

Balance Sheet Information as of June 30, 2013:

  • Cash and cash equivalents of $342 million, compared with $195 million at December 31, 2012
  • Vacation ownership contract receivables, net, of $2.8 billion, compared with $2.9 billion at December 31, 2012
  • Vacation ownership and other inventory of $1.0 billion, compared with $1.1 billion at December 31, 2012
  • Securitized vacation ownership debt of $1.9 billion, compared with $2.0 billion at December 31, 2012
  • Long-term debt of $2.9 billion, compared with $2.6 billion at December 31, 2012. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.3 billion as of June 30, 2013, compared with $0.6 billion as of December 31, 2012

A schedule of debt is included in Table 5 of this press release.

Outlook

Note to Editors:  The guidance excludes possible future share repurchases, while analysts' estimates often include share repurchases.  This results in discrepancies between Company guidance and database consensus forecasts.

For the full year 2013, the Company expects:

  • Revenues of approximately $4.925 - $5.100 billion
  • Adjusted EBITDA of approximately $1.140 - $1.165 billion
  • Adjusted EPS of approximately $3.66 - $3.76 based on a diluted share count of 136 million, from $3.60 - $3.70 based on a diluted share count of 138 million.

The guidance reflects assumptions used for internal planning purposes. Guidance may exclude non-recurring or special items, which may have a positive or negative impact on reported results. If economic conditions change materially from current levels, the Company's assumptions and guidance may change materially.

Conference Call Information
Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Wednesday, July 24, 2013 at 8:30 a.m. EDT. Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors.  An archive of this webcast will be available at the website for approximately 90 days beginning at noon EDT on July 24, 2013. The conference call may also be accessed by dialing 800-369-2125 and providing the passcode "WYNDHAM." Listeners are urged to call at least 10 minutes prior to the scheduled start time. A telephone replay will be available for approximately 90 days beginning at noon EDT on July 24, 2013, at 866-430-8799.

Presentation of Financial Information
Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items.  These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company's ongoing core operating performance.  Exclusion of items in our non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring.  A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.  It is not practicable to provide a reconciliation of forecasted adjusted EBITDA and adjusted EPS to the most directly comparable GAAP measure because certain items cannot be reasonably estimated or predicted at this time.  Any such items could be significant to the Company's reported results.

About Wyndham Worldwide Corporation
One of the world's largest hospitality companies, Wyndham Worldwide (NYSE: WYN) provides a wide range of hospitality products and services through its global portfolio of world-renowned brands.  The world's largest hotel company based on the number of properties, Wyndham Hotel Group is home to many of the world's best-known hotel brands, with over 7,410 franchised hotels and over 635,100 hotel rooms worldwide. Wyndham Exchange & Rentals is the worldwide leader in vacation exchange and the world's largest professionally managed vacation rentals business, providing more than 5 million leisure-bound families annually with access to over 106,000 vacation properties in 100 countries through its prominent exchange and vacation rental brands. The industry and timeshare ownership market leader, Wyndham Vacation Ownership develops, markets, and sells vacation ownership interests and provides consumer financing to owners through its network of 190 vacation ownership resorts serving approximately 915,000 owners throughout the United States, Canada, Mexico, the Caribbean, and the South Pacific. Based in Parsippany, NJ, Wyndham Worldwide employs approximately 32,500 associates globally. For more information, please visit www.wyndhamworldwide.com.

Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements.  Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings 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 15, 2013.  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


(1 of 2)

Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)



In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and "EBITDA", which

is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt,

interest income (excluding consumer financing interest) and income taxes, each of which is presented on the Company's Consolidated Statements of

Income.  The Company believes that EBITDA is a useful measure of performance for the Company's industry segments which, when considered with

GAAP measures, the Company believes gives a more complete understanding of its operating performance.  The Company's presentation of EBITDA may

not be comparable to similarly-titled measures used by other companies. 







The following tables summarize net revenues and EBITDA for reportable segments, as well as reconcile EBITDA to Net Income Attributable to Wyndham

shareholders for the three months ended June 30, 2013 and 2012:         




Three Months Ended June 30,




2013


2012




 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Lodging

$                     262


$               78


$                     233


$                        75

 (b) 

Vacation Exchange and Rentals

376


85


348


82


Vacation Ownership

630


161


570


150


     Total Reportable Segments

1,268


324


1,151


307


Corporate and Other (a)

(15)


(27)


(12)


(25)


     Total Company

$                  1,253


$             297


$                  1,139


$                      282












Reconciliation of EBITDA to Net Income Attributable to Wyndham shareholders


















EBITDA



$             297




$                      282


Depreciation and amortization



54




46


Interest expense



34




32


Interest income



(2)




(2)


Income before income taxes



211




206


Provision for income taxes



78




78


Net income attributable to Wyndham shareholders



$             133




$                      128





















(a)

Includes the elimination of transactions between segments.  

(b)

Includes a $1 million benefit from the recovery of a previously recorded impairment charge.

The following tables summarize net revenues and Adjusted EBITDA for reportable segments for the three months ended June 30, 2013 and 2012 (for a

description of adjustments by segment, see Table 7):

 










Three Months Ended June 30, 






2013


2012








Adjusted




Adjusted






 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Lodging



$                     262


$               78


$                     233


$                        74


Vacation Exchange and Rentals



376


85


348


82


Vacation Ownership



630


161


570


150


     Total Reportable Segments



1,268


324


1,151


306


Corporate and Other



(15)


(27)


(12)


(25)


     Total Company



$                  1,253


$             297


$                  1,139


$                      281


 












Table 1










(2 of 2)

Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)





















The following tables summarize net revenues and EBITDA for reportable segments, as well as reconcile EBITDA to Net Income Attributable to Wyndham

shareholders for the six months ended June 30, 2013 and 2012:













Six Months Ended June 30, 




2013


2012




 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Lodging

$                     485


$                   137


$                     418


$                   123

 (d) 

Vacation Exchange and Rentals

750


179


709


177

 (e) 

Vacation Ownership

1,179


272

 (b) 

1,071


253


     Total Reportable Segments

2,414


588


2,198


553


Corporate and Other (a)

(27)


(57)


(23)


(46)

 (f) 

     Total Company

$                  2,387


$                   531


$                  2,175


$                   507












Reconciliation of EBITDA to Net Income Attributable to Wyndham shareholders


















EBITDA



$                   531




$                   507


Depreciation and amortization



106




91


Interest expense



66




65


Early extinguishment of debt



111

 (c) 



106

 (g) 

Interest income



(4)




(5)


Income before income taxes



252




250


Provision for income taxes



92




91


Net income



160




159


Net loss attributable to noncontrolling interest



-




1


Net income attributable to Wyndham shareholders



$                   160




$                   160






















(a)


Includes the elimination of transactions between segments.  

(b)


Includes $2 million of costs incurred in connection with the acquisition of a WAAM 2.0 property (January 2013).

(c)


Represents costs incurred for the early repurchase of a portion of the Company's 7.375%, 5.75% and 6.00% senior unsecured notes and the remaining

portion of its 9.875% senior unsecured notes.

(d)


Includes a $1 million benefit from the recovery of a previously recorded impairment charge.

(e)


Includes a $2 million benefit related to the reversal of an allowance associated with a previously divested asset.

(f)


Includes $4 million of a net benefit during the six months ended June 30, 2012, related to the resolution of and adjustment to certain contingent liabilities

and assets resulting from our separation from Cendant.

(g)


Represents costs incurred for the early repurchase of a portion of the Company's 9.875% and 6.00% senior unsecured notes.





The following tables summarize net revenues and Adjusted EBITDA for reportable segments for the six months ended June 30, 2013 and 2012 (for a

description of adjustments by segment, see Table 7):

















Six Months Ended June 30, 






2013


2012








Adjusted




Adjusted






 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Lodging



$                     485


$                   137


$                     418


$                   122


Vacation Exchange and Rentals



750


179


709


175


Vacation Ownership



1,179


274


1,071


253


     Total Reportable Segments



2,414


590


2,198


550


Corporate and Other



(27)


(57)


(23)


(50)


     Total Company



$                  2,387


$                   533


$                  2,175


$                   500


 

 










Table 2


Wyndham Worldwide Corporation


CONSOLIDATED STATEMENTS OF INCOME


(In millions, except per share data)



























 Three Months Ended 


 Six Months Ended 





 June 30, 


 June 30, 





2013


2012


2013


2012


Net revenues











Service and membership fees


$          583


$          489


$       1,152


$          993



Vacation ownership interest sales


347


342


611


613



Franchise fees


152


163


274


281



Consumer financing


106


102


211


205



Other


65


43


139


83


Net revenues


1,253


1,139


2,387


2,175













Expenses











Operating


548


451


1,056

(a)

895



Cost of vacation ownership interests 


32


42


64


70



Consumer financing interest


20


23


40


46



Marketing and reservation


181


190


357


356



General and administrative


177


156


342


310

(d)


Depreciation and amortization


54


46


106


91


Total expenses


1,012


908


1,965


1,768













Operating income


241


231


422


407


Other income, net


(2)


(5)

(c)

(3)


(9)

(c) (e)

Interest expense


34


32


66


65


Early extinguishment of debt


-


-


111

(b)

106

(f)

Interest income


(2)


(2)


(4)


(5)













Income before income taxes


211


206


252


250


Provision for income taxes


78


78


92


91













Net income


133


128


160


159


Net loss attributable to noncontrolling interest


-


-


-


1













Net income attributable to Wyndham shareholders

$          133


$          128


$          160


$          160













Earnings per share











Basic


$         0.99


$         0.89


$         1.18


$         1.10



Diluted


0.98


0.88


1.17


1.08













Weighted average shares outstanding











Basic


135


144


136


145



Diluted


136


147


137


148


__________










(a)

Includes $2 million of costs incurred in connection with the acquisition of a WAAM 2.0 property (January 2013).


(b)

Represents costs incurred for the early repurchase of a portion of the Company's 7.375%, 5.75% and 6.00% senior

unsecured notes and the remaining portion of its 9.875% senior unsecured notes.


(c)

Includes a $1 million benefit from the recovery of a previously recorded impairment charge at the Company's lodging

business.


(d)

Includes $4 million of a net benefit during the six months ended June 30, 2012 related to the resolution of and

adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.


(e)

Includes a $2 million benefit related to the reversal of an allowance associated with a previously divested asset at the

Company's vacation exchange and rentals business.


(f)

Represents costs incurred for the early repurchase of a portion of the Company's 9.875% and 6.00% senior unsecured

notes. 












Table 3











(1 of 3)

Wyndham Worldwide Corporation

OPERATING STATISTICS












The following operating statistics are the drivers of our revenues and therefore provide an enhanced understanding of our businesses:

















Year

Q1

Q2

Q3

Q4

Full Year

Lodging (a)








Number of Rooms 

2013

631,800

635,100

 N/A 

 N/A 

 N/A 






2012

609,300

608,300

618,100

627,400

 N/A 






2011

609,600

612,900

611,200

613,100

 N/A 






2010

593,300

606,800

605,700

612,700

 N/A 













RevPAR

2013

$               31.05

$               38.00

 N/A 

 N/A 

 N/A 






2012

$               29.73

$               37.23

$               40.39

$               31.86

$               34.80






2011

$               27.71

$               35.38

$               39.49

$               30.65

$               33.34






2010

$               25.81

$               32.25

$               37.14

$               29.18

$               31.14












Vacation Exchange and Rentals








Average Number of Members (in 000s)

2013

3,668

3,686

 N/A 

 N/A 

 N/A 






2012

3,684

3,670

3,672

3,670

3,674






2011

3,766

3,755

3,744

3,734

3,750






2010

3,746

3,741

3,766

3,759

3,753













Exchange Revenue Per Member

2013

$             210.96

$             182.42

 N/A 

 N/A 

 N/A 






2012

$             204.56

$             177.07

$             171.14

$             165.86

$             179.68






2011

$             205.64

$             178.46

$             172.38

$             161.68

$             179.59






2010

$             201.93

$             172.20

$             173.44

$             162.59

$             177.53













Vacation Rental Transactions (in 000s) (b)

2013

423

355

 N/A 

 N/A 

 N/A 






2012

418

325

390

259

1,392






2011

398

328

370

250

1,347






2010

291

297

322

253

1,163













Average Net Price Per Vacation Rental(b)

2013

$             392.64

$             540.38

 N/A 

 N/A 

 N/A 






2012

$             379.40

$             524.40

$             635.44

$             484.69

$             504.55






2011

$             377.71

$             549.09

$             701.81

$             497.04

$             530.78






2010

$             361.17

$             387.01

$             500.31

$             449.12

$             425.38












Vacation Ownership (c)








Gross Vacation Ownership Interest (VOI) Sales (in 000s) (d)

2013

$           384,000

$           481,000

 N/A 

 N/A 

 N/A 






2012

$           384,000

$           460,000

$           502,000

$           435,000

$        1,781,000






2011

$           319,000

$           412,000

$           455,000

$           409,000

$        1,595,000






2010

$           308,000

$           371,000

$           412,000

$           373,000

$        1,464,000













Tours (e)

2013

163,000

206,000

 N/A 

 N/A 

 N/A 






2012

148,000

186,000

207,000

183,000

724,000






2011

137,000

177,000

197,000

173,000

685,000






2010

0

163,000

187,000

160,000

634,000













Volume Per Guest (VPG) (e)

2013

$               2,211

$               2,256

 N/A 

 N/A 

 N/A 






2012

$               2,414

$               2,361

$               2,315

$               2,225

$               2,324






2011

$               2,192

$               2,227

$               2,197

$               2,296

$               2,229






2010

$               2,334

$               2,156

$               2,081

$               2,214

$               2,183

Note: Full year amounts may not add across due to rounding.          

(a) 

Includes the impact of the acquisition of the Tryp hotel brand (June 2010) from the acquisition date forward.  Therefore, the operating statistics are not presented on a comparable

basis.         

(b) 

Includes the impact of the acquisitions of Hoseasons (March 2010), ResortQuest (September 2010), James Villa Holidays (November 2010), Smoky Mountain Property Management

Group (August 2012), Oceana Resorts (December 2012) and four tuck-in acquisitions (Q3 2011, Q4 2012 and Q1 2013) from their acquisition dates forward.  Therefore, the

operating statistics are not presented on a comparable basis.          

(c) 

Includes the impact of the acquisition of Shell Vacations Club (September 2012) from the acquisition date forward.  Therefore, the operating statistics are not presented on a

comparable basis.         

(d) 

Includes gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) 2.0 beginning in the second quarter of 2012 (see Table 9 for a reconciliation of gross VOI

sales to vacation ownership interest sales).         

(e) 

Includes the impact of WAAM 2.0 related tours beginning in the second quarter of 2012.         

 











Table 3











(2 of 3)












Wyndham Worldwide Corporation

ADDITIONAL DATA




























Year

Q1

Q2

Q3

Q4

Full Year

Lodging (a)








Number of Properties

2013

7,380

7,410

 N/A 

 N/A 

 N/A 






2012

7,150

7,170

7,260

7,340

 N/A 






2011

7,190

7,220

7,190

7,210

 N/A 






2010

7,090

7,160

7,150

7,210

 N/A 












Vacation Ownership








Provision for Loan Losses (in 000s) (b) 

2013

$             84,000

$             90,000

 N/A 

 N/A 

 N/A 






2012

$             96,000

$           100,000

$           124,000

$             89,000

$           409,000






2011

$             79,000

$             80,000

$             96,000

$             83,000

$           339,000






2010

$             86,000

$             87,000

$             85,000

$             82,000

$           340,000













Sales under WAAM 1.0 (in 000s) (c) 

2013

$             36,000

$             44,000

 N/A 

 N/A 

 N/A 






2012

$             17,000

$             18,000

$               5,000

$             10,000

$             49,000






2011

$             18,000

$             19,000

$             38,000

$             31,000

$           106,000






2010

$               5,000

$             13,000

$             20,000

$             14,000

$             51,000













WAAM 1.0 Commission Revenues (in 000s)

2013

$             24,000

$             30,000

 N/A 

 N/A 

 N/A 






2012

$             12,000

$             11,000

$               4,000

$               6,000

$             33,000






2011

$             10,000

$             11,000

$             23,000

$             21,000

$             65,000






2010

$               3,000

$               8,000

$             12,000

$               9,000

$             31,000













Sales under WAAM 2.0 (in 000s) (d) 

2013

$             13,000

$               1,000

 N/A 

 N/A 

 N/A 






2012

$                       -

$             12,000

$             57,000

$             30,000

$             99,000












Note: Full year amounts may not add across due to rounding.





(a)

Includes the impact of the acquisition of Tryp hotel brand (June 2010) from the acquisition date forward.  Therefore, the operating statistics are not presented on a comparable basis.

(b)

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.


(c)

Represents gross VOI sales under the Company's WAAM 1.0 for which the Company earns commission revenue (WAAM 1.0 Commission Revenues).  The commission revenue

earned on these sales is included in service fees and membership revenues on the Consolidated Statements of Income.


(d)

Represents gross VOI sales under the Company's WAAM 2.0 which enables the Company to acquire and own completed timeshare units close to the timing of the sales of such units. 

This significantly reduces the period between the deployment of capital to acquire inventory and the subsequent return on investment which occurs at the time of its sale to a timeshare

purchaser. The Company implemented this sales model during the second quarter of 2012 and as such, there is no historical data prior to 2012.



 

          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, or company owned,

(ii) properties under affiliation agreements for which we receive a fee for reservation and/or other services provided and  (iii) properties managed under a 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 paid annual membership dues as of the end of the period or within the allowed grace period.

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 services and products.          


Exchange Revenue Per Member: Represents total annualized revenues generated from fees associated with memberships, exchange transactions, member-related rentals and other

servicing for the period divided by the average number of vacation exchange members during the period.            


Vacation Rental Transactions:  Represents the number of transactions that are generated during the period in connection with customers booking their vacation rental stays through us. One

rental transaction is recorded for each standard one-week rental.          


Average Net Price Per Vacation Rental: Represents the net rental price generated from renting vacation properties to customers and other related rental servicing fees during the period

divided by the number of vacation rental transactions during the period.          


Vacation Ownership          


Gross Vacation Ownership Interest Sales: Represents sales of vacation ownership interest (VOIs), including Wyndham Asset Affiliation Model sales, before the net effect of percentage-of-

completion accounting and loan loss provisions.  See Table 9 for a reconciliation of Gross VOI sales to Vacation Ownership Interest Sales.           


Tours: Represents the number of tours taken by guests in our efforts to sell vacation ownership interests.          


Volume per Guest (VPG): Represents gross VOI sales (excluding tele-sales upgrades, which are non-tour upgrade sales) divided by the number of tours.  We have 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 2010-2013.            


General          


Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods.          

 














Table 4















Wyndham Worldwide Corporation

REVENUE DETAIL BY REPORTABLE SEGMENT

(In millions)
































2013


2012




 Q1 

 Q2 

 Q3 

 Q4 

 Year 


 Q1 

 Q2 

 Q3 

 Q4 

 Year 

Lodging














Royalties and Franchise Fees


$             64

$             79

 N/A 

 N/A 

 N/A 


$             62

$             80

$             88

$             71

$           301


Marketing, Reservation and Wyndham Rewards Revenues (a)

73

92

 N/A 

 N/A 

 N/A 


68

99

98

80

345


Hotel Management Reimbursable Revenues (b)

25

38

 N/A 

 N/A 

 N/A 


21

22

25

23

91


Inter-segment Trademark Fees


8

10

 N/A 

 N/A 

 N/A 


8

9

9

8

34


Owned Hotel Revenues


26

20

 N/A 

 N/A 

 N/A 


8

8

7

18

41


Ancillary Revenues (d)


26

23

 N/A 

 N/A 

 N/A 


18

15

22

23

78


Total Lodging


222

262

 N/A 

 N/A 

 N/A 


185

233

249

223

890















Vacation Exchange and Rentals














Exchange Revenues


193

168

 N/A 

 N/A 

 N/A 


188

162

157

153

660


Rental Revenues


166

192

 N/A 

 N/A 

 N/A 


159

170

248

125

702


Ancillary Revenues (e)


15

16

 N/A 

 N/A 

 N/A 


14

16

15

15

60


Total Vacation Exchange and Rentals

374

376

 N/A 

 N/A 

 N/A 


361

348

420

293

1,422















Vacation Ownership














Vacation Ownership Interest Sales

263

347

 N/A 

 N/A 

 N/A 


271

342

373

337

1,323


Consumer Financing


105

106

 N/A 

 N/A 

 N/A 


103

102

106

110

421


Property Management Fees


146

141

 N/A 

 N/A 

 N/A 


110

108

117

125

460


WAAM 1.0 Commissions


24

30

 N/A 

 N/A 

 N/A 


12

11

4

6

33


Ancillary Revenues (f)


11

6

 N/A 

 N/A 

 N/A 


5

7

8

12

32


Total Vacation Ownership


549

630

 N/A 

 N/A 

 N/A 


501

570

608

590

2,269

Total Reportable Segments


$      1,145

$      1,268

 N/A 

 N/A 

 N/A 


$      1,047

$      1,151

$      1,277

$      1,106

$      4,581
































2011


2010




 Q1 

 Q2 

 Q3 

 Q4 

 Year 


 Q1 

 Q2 

 Q3 

 Q4 

 Year 

Lodging














Royalties and Franchise Fees


$             58

$             75

$             85

$             66

$           284


$             52

$             69

$             82

$             62

$           265


Marketing, Reservation and Wyndham Rewards Revenues (a)

54

75

94

76

299


50

65

76

60

251


Hotel Management Reimbursable Revenues (b)

19

19

21

20

79


21

20

18

18

77


Inter-segment Trademark Fees (c)


1

2

3

4

10


-

-

-

-

-


Owned Hotel Revenues


-

-

-

5

5


-

-

-

-

-


Ancillary Revenues (d)


17

19

19

17

72


21

24

27

23

95


Total Lodging


149

190

222

188

749


144

178

203

163

688















Vacation Exchange and Rentals














Exchange Revenues


194

168

161

150

673


189

161

163

153

666


Rental Revenues


150

180

260

125

715


105

115

161

114

495


Ancillary Revenues (e)


12

13

15

16

56


6

5

6

15

32


Total Vacation Exchange and Rentals

356

361

436

291

1,444


300

281

330

282

1,193















Vacation Ownership














Vacation Ownership Interest Sales

222

313

320

295

1,150


217

271

308

276

1,072


Consumer Financing


102

103

105

105

415


105

106

107

107

425


Property Management Fees


110

108

105

101

424


100

100

104

101

405


WAAM 1.0 Commissions


10

11

23

21

65


3

8

12

8

31


Ancillary Revenues (f)


6

6

6

5

23


19

20

2

5

46


Total Vacation Ownership


450

541

559

527

2,077


444

505

533

497

1,979

Total Reportable Segments


$          955

$      1,092

$      1,217

$      1,006

$      4,270


$          888

$          964

$      1,066

$          942

$      3,860





























(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 pay on behalf of property owners and for which we are reimbursed by the property owners.

(c)

During 2011, $3 million, $1 million and $2 million of inter-segment trademark fees were recorded as a reduction of expenses in Q1, Q2 and Q3, respectively.  As such, total inter-segment trademark fees

for 2011 were $16 million.

(d)

Primarily includes additional services provided to franchisees.

(e)

Primarily includes fees generated from programs with affiliated resorts and homeowners.

(f)

Primarily includes revenues associated with bonus points/credits that are provided as purchase incentives on VOI sales and fees generated from other non-core operations.

 

















Table 5

Wyndham Worldwide Corporation

SCHEDULE OF DEBT

(In millions)








































June 30,

2013


March 31,

2013


December 31,

2012


September 30,

2012


June 30,

2012

















Securitized vacation ownership debt (a)











Term notes


$         1,569


$           1,869


$               1,770


$          1,702


$         1,634

Bank conduit facility (b)


289


125


190


220


220

Securitized vacation ownership debt (c)


1,858


1,994


1,960


1,922


1,854

Less: Current portion of securitized vacation ownership debt


217


228


218


206


191

Long-term securitized vacation ownership debt


$         1,641


$           1,766


$               1,742


$          1,716


$         1,663

















Debt:











Revolving credit facility (due July 2018) (d)


$              41


$                34


$                    85


$             270


$              81

Commercial paper(e)





168


202


273


-


-

9.875% senior unsecured notes (due May 2014) (f)


-


-


42


42


42

6.00% senior unsecured notes (due December 2016)


319


319


361


361


362

2.95% senior unsecured notes (due March 2017)


298


298


298


298


298

5.75% senior unsecured notes (due February 2018)


14


14


248


248


248

2.50% senior unsecured notes (due March 2018)


447


447


-


-


-

7.375% senior unsecured notes (due March 2020)


40


40


248


248


248

5.625% senior unsecured notes (due March 2021)


246


246


246


246


245

4.25% senior unsecured notes (due March 2022)


644


644


644


644


644

3.90% senior unsecured notes (due March 2023)


397


397


-


-


-

Capital leases


184


187


105


104


95

Other


133


133


52


68


3

Total debt


2,931


2,961


2,602


2,529


2,266

Less: Current portion of debt


52


254


326


64


11

Long-term debt


$         2,879


$           2,707


$               2,276


$          2,465


$         2,255



(a)

The Company's vacation ownership contract receivables are securitized through bankruptcy-remote special purpose entities ("SPE") that are consolidated within our

financial statements. These bankruptcy-remote SPEs are legally separate from the Company. The receivables held by the bankruptcy-remote SPEs are not available to the

Company's creditors and legally are not the Company's assets. Additionally, the creditors of these SPEs have no recourse to the Company for principal and interest.

(b)

Represents a non-recourse vacation ownership bank conduit facility with a term through August 2014 and borrowing capacity of $650 million. As of June 30, 2013, this

facility had a remaining borrowing capacity of $361 million.

(c)

This debt is collateralized by $2,414 million, $2,512 million, $2,543 million, $2,517 million and $2,490 million of underlying vacation ownership contract receivables and

related assets as of June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively.

(d)

Represents a $1.5 billion revolving credit facility that expires on July 15, 2018. As of June 30, 2013, the Company had $11 million of outstanding letters of credit and a

remaining borrowing capacity of $1.4 billion. After considering outstanding commercial paper borrowings of $168 million, the remaining borrowing capacity was $1.3

billion as of June 30, 2013.

(e)

Represents a $750 million commercial paper program which the Company commenced in October 2012. As of June 30, 2013, the program had a remaining borrowing

capacity of $582 million.  

(f)

Represents senior unsecured notes issued by the Company during May 2009 and repaid by the Company during March 2013.

 







Table 6







(1 of 2)

Wyndham Worldwide Corporation

BRAND SYSTEM DETAILS

















As of and For the Three Months Ended June 30, 2013

Brand

Number of Properties

Number of Rooms

Average

Occupancy Rate

Average Daily

Rate (ADR)

Average Revenue

Per Available

Room (RevPAR)








Lodging






     Wyndham Hotels and Resorts

136

32,400

63.5%

$118.31

$75.10








     TRYP by Wyndham

103

14,344

64.6%

$95.59

$61.75








     Wingate by Wyndham

158

14,493

65.0%

$86.67

$56.34








     Hawthorn Suites by Wyndham

91

9,118

67.6%

$72.51

$49.02








     Ramada 

837

114,691

54.4%

$80.42

$43.78








     Baymont

325

26,860

55.6%

$63.70

$35.42








     Days Inn 

1,833

148,411

51.7%

$64.78

$33.46








     Super 8 

2,356

150,467

59.0%

$52.70

$31.08








     Howard Johnson 

446

45,089

48.2%

$62.57

$30.18








     Travelodge 

437

32,607

51.9%

$66.48

$34.50








     Microtel Inns & Suites by Wyndham

310

22,080

60.7%

$64.85

$39.34








     Knights Inn 

374

22,963

42.5%

$45.08

$19.17








     Dream

5

990

75.5%

$262.46

$198.18








     Night

3

630

61.5%

$169.06

$103.91









Total Lodging

7,414

635,143

55.2%

$68.78

$38.00








Vacation Ownership






     Wyndham Vacation Ownership resorts

190

23,410

N/A

N/A

N/A









Total Wyndham Worldwide

7,604

658,553




















As of and For the Three Months Ended June 30, 2012

Brand

Number of Properties

Number of Rooms

Average

Occupancy Rate

Average Daily

Rate (ADR)

Average Revenue

Per Available

Room (RevPAR)








Lodging






     Wyndham Hotels and Resorts

101

25,360

63.2%

$111.54

$70.48








     TRYP by Wyndham

89

12,824

66.9%

$102.26

$68.37








     Wingate by Wyndham

161

14,796

65.6%

$84.70

$55.60








     Hawthorn Suites by Wyndham

77

7,355

65.3%

$75.89

$49.56








     Ramada 

841

113,275

55.5%

$79.17

$43.93








     Baymont

257

21,655

55.0%

$64.24

$35.36








     Days Inn 

1,825

146,261

51.4%

$63.92

$32.86








     Super 8 

2,275

144,570

57.8%

$53.07

$30.65








     Howard Johnson 

445

44,441

49.4%

$62.32

$30.79








     Travelodge 

433

32,159

50.7%

$66.41

$33.66








     Microtel Inns & Suites by Wyndham

308

21,967

58.0%

$62.40

$36.18








     Knights Inn 

353

22,255

42.5%

$43.11

$18.30








     Dream

5

990

73.1%

$221.34

$161.88








     Night

2

422

86.6%

$210.05

$181.94









Total Lodging

7,172

608,330

54.9%

$67.81

$37.23








Vacation Ownership






     Wyndham Vacation Ownership resorts

165

20,938

N/A

N/A

N/A









Total Wyndham Worldwide

7,337

629,268











NOTE: A glossary of terms is included in Table 3 (3 of 3); 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, 2013

Brand

Number of Properties

Number of Rooms

Average

Occupancy Rate

Average Daily

Rate (ADR)

Average Revenue

Per Available

Room (RevPAR)








Lodging






     Wyndham Hotels and Resorts

136

32,400

60.2%

$115.98

$69.80








     TRYP by Wyndham

103

14,344

59.3%

$96.39

$57.15








     Wingate by Wyndham

158

14,493

61.0%

$85.05

$51.88








     Hawthorn Suites by Wyndham

91

9,118

63.1%

$71.57

$45.19








     Ramada 

837

114,691

51.5%

$79.58

$41.01








     Baymont

325

26,860

50.7%

$62.15

$31.50








     Days Inn 

1,833

148,411

47.3%

$63.27

$29.91








     Super 8 

2,356

150,467

54.4%

$51.38

$27.96








     Howard Johnson 

446

45,089

45.6%

$61.78

$28.17








     Travelodge 

437

32,607

47.8%

$64.89

$31.02








     Microtel Inns & Suites by Wyndham

310

22,080

56.4%

$63.01

$35.56








     Knights Inn 

374

22,963

40.4%

$43.34

$17.53








     Dream

5

990

68.5%

$220.79

$151.31








     Night

3

630

57.5%

$146.22

$84.14









Total Lodging

7,414

635,143

51.3%

$67.35

$34.55








Vacation Ownership






     Wyndham Vacation Ownership resorts

190

23,410

N/A

N/A

N/A









Total Wyndham Worldwide

7,604

658,553




















As of and For the Six Months Ended June 30, 2012

Brand

Number of Properties

Number of Rooms

Average

Occupancy Rate

Average Daily

Rate (ADR)

Average Revenue

Per Available

Room (RevPAR)








Lodging






     Wyndham Hotels and Resorts

101

25,360

59.4%

$111.30

$66.15








     TRYP by Wyndham

89

12,824

59.0%

$99.57

$58.73








     Wingate by Wyndham

161

14,796

61.6%

$82.60

$50.91








     Hawthorn Suites by Wyndham

77

7,355

62.4%

$74.93

$46.74








     Ramada 

841

113,275

51.6%

$77.70

$40.06








     Baymont

257

21,655

49.9%

$62.54

$31.18








     Days Inn 

1,825

146,261

46.9%

$61.67

$28.95








     Super 8 

2,275

144,570

52.5%

$51.94

$27.28








     Howard Johnson 

445

44,441

46.8%

$60.72

$28.42








     Travelodge 

433

32,159

46.7%

$64.10

$29.95








     Microtel Inns & Suites by Wyndham

308

21,967

53.5%

$60.54

$32.41








     Knights Inn 

353

22,255

39.5%

$41.79

$16.51








     Dream

5

990

74.1%

$207.74

$154.04








     Night

2

422

87.4%

$208.83

$182.48









Total Lodging

7,172

608,330

50.5%

$66.25

$33.47








Vacation Ownership






     Wyndham Vacation Ownership resorts

165

20,938

N/A

N/A

N/A









Total Wyndham Worldwide

7,337

629,268











NOTE: A glossary of terms is included in Table 3 (3 of 3); RevPAR may not recalculate by multiplying average occupancy rate by ADR due to rounding.

 









Table 7








(1 of 2)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION

(In millions)






















Reported

Acquisition 

Adjusted

Three months ended March 31, 2013


Net Revenues


EBITDA

Costs (b)

EBITDA

Lodging


$                      222


$                        58

$                          -

$                        58

Vacation Exchange and Rentals


374


94

-

94

Vacation Ownership


549


111

2

113

Total Reportable Segments


1,145


263

2

265

Corporate and Other (a)


(12)


(29)

-

(29)

Total Company


$                   1,133


$                      234

$                         2

$                      236

















Three months ended June 30, 2013







Lodging


$                      262


$                        78

$                          -

$                        78

Vacation Exchange and Rentals


376


85

-

85

Vacation Ownership


630


161

-

161

     Total Reportable Segments


1,268


324

-

324

Corporate and Other (a)


(15)


(27)

-

(27)

     Total Company


$                   1,253


$                      297

$                          -

$                      297



(a)

Includes the elimination of transactions between segments.

(b)

Relates to costs incurred in connection with the acquisition of a WAAM 2.0 property (January 2013).

 














Table 7













(2 of 2)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION

(In millions)
































Reported

Legacy

Impairment

Allowance

Acquisition 

Asset

Restructuring 

Adjusted

Three months ended March 31, 2012


Net Revenues


EBITDA

Adjustments (b)

Recovery (c)

Reversal (d)

Costs (e)

Impairment (f)

Costs (g)

EBITDA

Lodging


$                      185


$                        49

$                            -

$                            -

$                            -

$                        -

$                        -

$                        -

$                        49

Vacation Exchange and Rentals


361


95

-

-

(2)

-

-

-

93

Vacation Ownership


501


103

-

-

-

-

-

-

103

     Total Reportable Segments


1,047


247

-

-

(2)

-

-

-

245

Corporate and Other (a)


(11)


(21)

(4)

-

-

-

-

-

(25)

     Total Company


$                   1,036


$                      226

$                         (4)

$                            -

$                         (2)

$                        -

$                        -

$                        -

$                      220



























Three months ended June 30, 2012












Lodging


$                      233


$                        75

$                            -

$                         (1)

$                            -

$                        -

$                        -

$                        -

$                        74

Vacation Exchange and Rentals


348


82

-

-

-

-

-

-

82

Vacation Ownership


570


150

-

-

-

-

-

-

150

     Total Reportable Segments


1,151


307

-

(1)

-

-

-

-

306

Corporate and Other (a)


(12)


(25)

-

-

-

-

-

-

(25)

     Total Company


$                   1,139


$                      282

$                            -

$                         (1)

$                            -

$                        -

$                        -

$                        -

$                      281














Three months ended September 30, 2012











Lodging


$                      249


$                        86

$                            -

$                            -

$                            -

$                        -

$                        -

$                        -

$                        86

Vacation Exchange and Rentals


420


123

-

-

-

-

-

-

123

Vacation Ownership


608


154

-

-

-

1

-

-

155

     Total Reportable Segments


1,277


363

-

-

-

1

-

-

364

Corporate and Other (a)


(12)


(30)

1

-

-

-

-

-

(29)

     Total Company


$                   1,265


$                      333

$                           1

$                            -

$                            -

$                         1

$                        -

$                        -

$                      335














Three months ended December 31, 2012











Lodging


$                      223


$                        62

$                          -

$                          -

$                          -

$                        -

$                        -

$                        -

$                        62

Vacation Exchange and Rentals


293


28

-

-

-

1

8

5

42

Vacation Ownership


590


142

-

-

-

-

-

2

144

     Total Reportable Segments


1,106


232

-

-

-

1

8

7

248

Corporate and Other (a)


(12)


(28)

(2)

-

-

-

-

-

(30)

     Total Company


$                   1,094


$                      204

$                         (2)

$                          -

$                          -

$                         1

$                         8

$                         7

$                      218














Twelve months ended December 31, 2012











Lodging


$                      890


$                      272

$                          -

$                         (1)

$                          -

$                        -

$                        -

$                        -

$                      271

Vacation Exchange and Rentals


1,422


328

-

-

(2)

1

8

5

340

Vacation Ownership


2,269


549

-

-

-

1

-

2

552

     Total Reportable Segments


4,581


1,149

-

(1)

(2)

2

8

7

1,163

Corporate and Other (a)


(47)


(104)

(5)

-

-

-

-

-

(109)

     Total Company


$                   4,534


$                   1,045

$                         (5)

$                         (1)

$                         (2)

$                         2

$                         8

$                         7

$                   1,054



(a)

Includes the elimination of transactions between segments.








(b)

Relates to the net expense/(benefit) from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.

(c)

Relates to the recovery of a previously recorded impairment charge.

(d)

Relates to a benefit from the reversal of an allowance associated with a previously divested asset.

(e)

Relates to costs incurred in connection with the Company's acquisition of Shell Vacations Club (September 2012) and the acquisition of Oceana Resorts and a tuck-in acquisition (December 2012).

(f)

Relates to a non-cash impairment charge for the write-down of the ResortQuest and Steamboat Resorts tradenames.

(g)

Relates to costs incurred as a result of organizational realignment initiatives commenced during 2012 at the Company's vacation exchange and rentals business and restructuring associated with the Shell acquisition.

 












Table 8












(1 of 3)













Wyndham Worldwide Corporation

NON-GAAP FINANCIAL INFORMATION

(In millions, except per share data)
















Six Months Ended June 30, 2013


















Legacy Adjustments


Acquisition Costs


Early Extinguishment of Debt


As Adjusted non-GAAP




 As Reported 





Net revenues











     Service and membership fees


$                   1,152








$                1,152

     Vacation ownership interest sales


611








611

     Franchise fees


274








274

     Consumer financing


211








211

     Other


139








139

Net revenues


2,387


-


-


-


2,387













Expenses











     Operating


1,056




(2)

 (b) 



1,054

     Cost of vacation ownership interests 


64








64

     Consumer financing interest


40








40

     Marketing and reservation


357








357

     General and administrative


342








342

     Depreciation and amortization


106








106

Total expenses


1,965


-


(2)


-


1,963













Operating income


422


-


2


-


424

Other income, net


(3)








(3)

Interest expense


66








66

Early extinguishment of debt


111






(111)

 (c) 

-

Interest income


(4)








(4)













Income before income taxes


252


-


2


111


365

Provision for income taxes


92


(1)

 (a) 

1

 (d) 

42

 (d) 

134













Net income attributable to Wyndham shareholders


$                      160


$                          1


$                      1


$                      69


$                   231













Earnings per share











     Basic


$                     1.18


$                     0.01


$                 0.01


$                   0.51


$                  1.71

     Diluted


1.17


0.01


0.01


0.50


1.69













Weighted average shares outstanding











     Basic


136


136


136


136


136

     Diluted


137


137


137


137


137

__________











The above table reconciles certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the comparison of particular adjustments

as they appear in the line items of the income statement in order to assist investors' understanding of the overall impact of such adjustments. This non-GAAP

reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.













Note: EPS amounts may not add due to rounding.











(a)  Relates to a state tax payment for legacy tax matters.









(b)  Relates to costs incurred in connection with the acquisition of a WAAM 2.0 property (January 2013).





(c)  Represents costs incurred for the early repurchase of a portion of the Company's 7.375%, 5.75% and 6.00% senior unsecured notes and the remaining portion of the

       9.875% senior unsecured notes. 

(d)  Relates to the tax effect of the adjustment.

 








Table 8








(2 of 3)









Wyndham Worldwide Corporation

NON-GAAP FINANCIAL INFORMATION

(In millions, except per share data)












Three Months Ended June 30, 2012














Impairment

Recovery


As Adjusted

non-GAAP




 As Reported 


Net revenues







     Service fees and membership


$                      489




$                   489

     Vacation ownership interest sales


342




342

     Franchise fees


163




163

     Consumer financing


102




102

     Other


43




43

Net revenues


1,139


-


1,139









Expenses







     Operating


451




451

     Cost of vacation ownership interests 


42




42

     Consumer financing interest


23




23

     Marketing and reservation


190




190

     General and administrative


156




156

     Depreciation and amortization


46




46

Total expenses


908


-


908









Operating income


231


-


231

Other income, net


(5)


1

 (a) 

(4)

Interest expense


32




32

Interest income


(2)




(2)









Income before income taxes


206


(1)


205

Provision for income taxes


78


(1)

 (b) 

77









Net income attributable to Wyndham shareholders


$                      128


$                        -


$                   128









Earnings per share







     Basic


$                     0.89


$                        -


$                  0.89

     Diluted


0.88


-


0.87









Weighted average shares outstanding







     Basic


144


144


144

     Diluted


147


147


147

__________







The above table reconciles certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the

comparison of particular adjustments as they appear in the line items of the income statement in order to assist investors' understanding of

the overall impact of such adjustments. This non-GAAP reconciliation table should not be considered a substitute for, nor superior to,

financial results and measures determined or calculated in accordance with GAAP.









Note: EPS amounts may not add due to rounding.







(a)  Relates to the recovery of a previously recorded impairment charge.

(b)  Relates to the tax effect of the adjustment.














Table 8














(3 of 3)















Wyndham Worldwide Corporation

NON-GAAP FINANCIAL INFORMATION

(In millions, except per share data)


















Six Months Ended June 30, 2012




















Impairment Recovery


Legacy Adjustments


Allowance Reversal


Early Extinguishment of Debt


As Adjusted non-GAAP




 As Reported 





Net revenues













     Service fees and membership


$                      993










$                 993

     Vacation ownership interest sales


613










613

     Franchise fees


281










281

     Consumer financing


205










205

     Other


83










83

Net revenues


2,175


-


-


-


-


2,175















Expenses













     Operating


895










895

     Cost of vacation ownership interests 


70










70

     Consumer financing interest


46










46

     Marketing and reservation


356










356

     General and administrative


310




4

 (b) 





314

     Depreciation and amortization


91










91

Total expenses


1,768


-


4


-


-


1,772















Operating income


407


-


(4)


-


-


403

Other income, net


(9)


1

 (a) 



2

 (c) 



(6)

Interest expense


65










65

Early extinguishment of debt


106








(106)

 (d) 

-

Interest income


(5)










(5)















Income before income taxes


250


(1)


(4)


(2)


106


349

Provision for income taxes


91


(1)

 (e) 

(2)

 (e) 

-

 (e) 

44

 (e) 

132















Net income


159


-


(2)


(2)


62


217

Net loss attributable to noncontrolling interest


1


-


-


-


-


1















Net income attributable to Wyndham shareholders


$                      160


$                        -


$                            (2)


$                   (2)


$                      62


$                 218















Earnings per share













     Basic


$                     1.10


$                        -


$                       (0.02)


$              (0.01)


$                   0.43


$                1.50

     Diluted


1.08


-


(0.02)


(0.01)


0.42


1.47















Weighted average shares outstanding













     Basic


145


145


145


145


145


145

     Diluted


148


148


148


148


148


148

__________













The above table reconciles certain non-GAAP financial measures. The presentation of these adjustments is intended to permit the comparison of particular adjustments as they appear in the line

items of the income statement in order to assist investors' understanding of the overall impact of such adjustments. This non-GAAP reconciliation table should not be considered a substitute for,

nor superior to, financial results and measures determined or calculated in accordance with GAAP.















(a)  Relates to the recovery of a previously recorded impairment charge.

(b)  Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.

(c)  Relates to a benefit from the reversal of an allowance associated with a previously divested asset.

(d)  Represents costs incurred for the early repurchase of a portion of the Company's 9.875% senior unsecured notes and 6.00% senior unsecured notes. 

(e)  Relates to the tax effect of the adjustment.

 







Table 9

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION

(In millions)








FREE CASH FLOW







The Company defines free cash flow to be net cash provided by operating activities less property and equipment additions which it also refers to as capital expenditures. Prior to the

fourth quarter 2012,  the Company had previously included development advances within its calculation of free cash flow.  

We believe free cash flow to be a useful operating performance measure to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt

service and other obligations, our ability to grow our business through acquisitions, development advances and equity investments, as well as our ability to return cash to shareholders

through dividends and share repurchases. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities, net cash used in investing activities 

and net cash used in financing activities as a means for evaluating Wyndham Worldwide is that free cash flow does not represent the total cash movement for the period as detailed in the

consolidated statement of cash flows.








The following table provides more details on the GAAP financial measure that is most directly comparable to the non-GAAP financial measure and the related reconciliation between

these financial measures:










Six Months Ended June 30, 





2013


2012










Net cash provided by operating activities


$                     758


$                     647



Less: Property and equipment additions


(104)


(78)



Free cash flow


$                     654


$                     569

















GROSS VOI SALES














The following table provides a reconciliation of Gross VOI sales (see Table 3) to Vacation ownership interest sales (see Table 4):








Year







2013


Q1

Q2

Q3

Q4

Full Year








Gross VOI sales (a)


$                     384

$                     481

 N/A 

 N/A 

 N/A 

Less: Sales under WAAM 1.0


(36)

(44)

 N/A 

 N/A 

 N/A 

Gross VOI sales, net of WAAM 1.0 sales


347

437

 N/A 

 N/A 

 N/A 

Less: Loan loss provision


(84)

(90)

 N/A 

 N/A 

 N/A 

Vacation ownership interest sales (a)


$                     263

$                     347

 N/A 

 N/A 

 N/A 








2012














Gross VOI sales (a)


$                     384

$                     460

$                     502

$                     435

$                  1,781

Less: Sales under WAAM 1.0


(17)

(18)

(5)

(10)

(49)

Gross VOI sales, net of WAAM 1.0 sales


367

442

497

426

1,732

Less: Loan loss provision


(96)

(100)

(124)

(89)

(409)

Vacation ownership interest sales (a)


$                     271

$                     342

$                     373

$                     337

$                  1,323








2011














Gross VOI sales


$                     319

$                     412

$                     455

$                     409

$                  1,595

Less: Sales under WAAM 1.0


(18)

(19)

(38)

(31)

(106)

Gross VOI sales, net of WAAM 1.0 sales


302

393

417

378

1,489

Less: Loan loss provision


(79)

(80)

(96)

(83)

(339)

Vacation ownership interest sales


$                     222

$                     313

$                     320

$                     295

$                  1,150








2010














Gross VOI sales


$                     308

$                     371

$                     412

$                     373

$                  1,464

Less: Sales under WAAM 1.0


(5)

(13)

(20)

(14)

(51)

Gross VOI sales, net of WAAM 1.0 sales


303

358

392

359

1,413

Less: Loan loss provision


(86)

(87)

(85)

(82)

(340)

Vacation ownership interest sales


$                     217

$                     271

$                     308

$                     276

$                  1,072

_____________







Note: Amounts may not add due to rounding.







(a) Includes VOI sales under WAAM 2.0 beginning in the second quarter of 2012.



























The following includes primarily tele-sales upgrades and other non-tour revenues, which are excluded from Gross VOI sales in the Company's VPG calculation (see Table 3):










Q1

Q2

Q3

Q4

Full Year








2013


$                       24

$                       18

 N/A 

 N/A 

 N/A 

2012


$                       27

$                       20

$                       22

$                       28

$                       97

2011


$                       18

$                       18

$                       21

$                       11

$                       68

2010


$                       20

$                       20

$                       23

$                       17

$                       80

SOURCE Wyndham Worldwide Corporation



RELATED LINKS
http://www.wyndhamworldwide.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.