Research Desk Line-up: Choice Hotels Intl. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Wyndham Worldwide Corp. (NYSE: WYN) ("Wyndham"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=WYN, following the Company's reporting of its third quarter fiscal 2017 operating results on October 25, 2017. The hotel and resorts chain topped earnings expectations and updated its guidance for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Lodging industry. Pro-TD has currently selected Choice Hotels International, Inc. (NYSE: CHH) for due-diligence and potential coverage as the Company reported on November 06, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Choice Hotels Intl. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WYN; also brushing on CHH. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=WYN

http://protraderdaily.com/optin/?symbol=CHH

Earnings Reviewed

For Q3 2017, Wyndham's revenues were $1.63 billion, up 4% compared to $1.57 billion in Q3 2016.

The Company's depreciation and amortization expenses were $69 million in Q3 2017 compared to $63 million in Q3 2016, as additional long-term capital projects came into service.

Wyndham's net income totaled $203 million in Q3 2017 compared to $196 million for Q3 2016. The Company's diluted earnings per share (EPS) increased 11% to $1.97 versus $1.78 in the prior year's comparable period. Wyndham's adjusted net income was $209 million, or $2.03 per diluted share, in Q3 2017 compared to $207 million, or $1.89 per diluted share, in Q3 2016. During the reported quarter, earnings benefited from the growth in revenues, partially offset by higher year-over-year interest, depreciation and variable compensation expenses, along with the impact of Hurricanes Irma and Maria. The Company's earnings beat Wall Street's estimates of $2.03 per share.

For Q3 2017, Wyndham's earnings before interest, tax, depreciation, and amortization (EBITDA) was $422 million compared to $402 million in the prior year's same period. The Company's adjusted EBITDA totaled $436 million compared to $423 million in the prior year's corresponding quarter. Wyndham estimated that hurricanes in the reported quarter reduced revenues, net income, and EBITDA by $13 million, $6 million, and $9 million, respectively.

Segment Results

During Q3 2017, Wyndham's Hotel Group segment's revenues were $368 million compared to $364 million in Q3 2016. The results reflected 9% higher royalties and franchise fees, as well as increased other revenue due to a growth in the Wyndham Rewards credit card program. The segment's EBITDA totaled $121 million for the reported quarter compared to $107 million in the prior year's same quarter.

For Q3 2017, Hotel Group segment's domestic same-store RevPAR increased 2.3% on a y-o-y basis. As of September 30, 2017, the Company's hotel system consisted of over 8,100 properties and over 708,500 rooms, a 3% increase compared to Q3 2016. The development pipeline increased to nearly 1,190 hotels and over 146,900 rooms, a 10% year-over-year room increase, of which 57% are international and 68% are new constructions.

During Q3 2017, Wyndham's Destination Network segment's revenues totaled $511 million, up 5% compared to $486 million in Q3 2016. The segment's vacation rental revenues were $327 million versus $304 million in the prior year's comparable quarter. Exchange revenues were $158 million in the reported quarter, down 1% on a y-o-y basis, reflecting the adverse impact of the hurricanes. Exchange revenue per member increased 1% and the average number of members declined 2%.

For Q3 2017, Destination Network segment's EBITDA totaled $154 million compared to $138 million in Q3 2016. The segment's adjusted EBITDA was $150 million for the reported quarter compared to $142 million in the prior year's corresponding quarter, reflecting increased vacation rental volumes and favorable foreign currency movements, partially offset by the adverse impact of the hurricanes.

During Q3 2017, Wyndham's Vacation Ownership segment's revenues were $773 million, up 4% compared to $744 million in Q3 2016. The segment's tour flow increased 7% on a y-o-y basis, driven by increased tours to new owners. Volume per guest (VPG) declined 1%, primarily reflecting a 16% increase in sales in North America to new owners, which produce a lower VPG. Vacation Ownership segment's EBITDA was $190 million in Q3 2017 compared to $189 million in Q3 2016.

Balance Sheet

As of September 30, 2017, Wyndham's cash and cash equivalents were $289 million compared to $185 million as of December 31, 2016. The Company's long-term debt totaled $3.9 billion compared to $3.4 billion at December 31, 2016. The increase in debt reflected higher vacation ownership contract receivables, higher VOI inventory, lower securitized borrowings, and an increase in the Company's cash balance.

As of September 30, 2017, Wyndham's net vacation ownership contract receivables totaled $2.9 billion compared to $2.8 billion at December 31, 2016. The Company's vacation ownership and other inventory was $1.3 billion on September 30, 2017, compared to $1.4 billion at December 31, 2016.

Wyndham repurchased 1.5 million shares of common stock for $150 million during Q3 2017 at an average price of $101.18. The Company's Board of Directors approved a $1.0 billion increase in the share repurchase authorization. Including the increase, the Company's remaining share repurchase authorization totals $1.3 billion as of October 24, 2017.

For the nine months ended September 30, 2017, Wyndham's net cash provided by operating activities was $666 million compared to $786 million in the prior year's same period. The Company's free cash flow was $541 million for the nine months ended September 30, 2017, compared to $650 million for the same period in 2016.

Outlook

For FY17, Wyndham is forecasting revenues of $5.80 billion to $5.85 billion, and adjusted net income of $618 million to $628 million. The Company is estimating adjusted EBITDA in the range of $1.380 billion to $1.395 billion, and adjusted diluted EPS in the band of $5.95 to $6.05.

Stock Performance

At the closing bell, on Tuesday, November 14, 2017, Wyndham Worldwide's stock advanced 1.17%, ending the trading session at $107.54. A total volume of 1.07 million shares have exchanged hands, which was higher than the 3-month average volume of 1.06 million shares. The Company's stock price skyrocketed 8.52% in the last three months, 13.80% in the past six months, and 50.09% in the previous twelve months. Moreover, the stock soared 40.81% since the start of the year. The stock is trading at a PE ratio of 19.31 and has a dividend yield of 2.16%. The stock currently has a market cap of $10.99 billion.

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