Wyndham Worldwide Corporation : Wyndham Worldwide Reports First Quarter 2012 Earnings
04/25/2012| 06:35am US/Eastern
Recommend:
PARSIPPANY, N.J., April 25, 2012 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months ended March 31, 2012.
Highlights:
-- First quarter adjusted diluted earnings per share (EPS) was $0.60,
compared with $0.44 in the first quarter of 2011, an increase of 36%.
First quarter 2012 reported diluted EPS was $0.21, a decrease of 49%
from the same period in 2011, reflecting early extinguishment charges
related to $650 million of debt tender offers.
-- First quarter Adjusted EBITDA increased 8% to $220 million.
-- Free cash flow increased to $193 million for the quarter ended March 31,
2012, compared with $185 million from the same period in 2011.
-- During the quarter, the Company repurchased 3.6 million shares of its
common stock for $150 million at an average price of $42.05.
-- The Company announced today that its Board of Directors approved a $750
million increase to the share repurchase authorization.
"First quarter results were strong, reflecting the power of our fee-for-service business model across economic cycles, continuing innovation throughout the Company, robust free cash flow and disciplined capital allocation," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "Furthermore, consumers are traveling. Our Vacation Ownership and Hotel businesses are showing great momentum and our Exchange and Rentals business proved resilient despite the difficult economic climate in Europe. As always, we will continue to focus on driving operational improvements in 2012 and beyond."
FIRST QUARTER 2012 OPERATING RESULTS
First quarter revenues were $1.0 billion, an increase of 9% from the prior year period. The increase reflects growth in all of our business units led by the Company's Lodging and Vacation Ownership businesses.
For the first quarter of 2012, adjusted net income was $90 million, or $0.60 per diluted share, compared with $79 million, or $0.44 per diluted share for the same period in 2011. The increase in adjusted net income primarily reflects stronger operating results in our Lodging and Vacation Ownership businesses. Adjusted net income for the first quarter of 2012 excludes a $62 million early extinguishment charge related to $650 million of debt tender offers and $4 million of benefits related to legacy and other adjustments. Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.
Including the early extinguishment charge and legacy benefits, reported net income for the first quarter of 2012 was $32 million, or $0.21 per diluted share, compared with net income of $72 million, or $0.41 per diluted share, for the first quarter of 2011.
Free cash flow increased 4% to $193 million for the quarter ended March 31, 2012, compared with $185 million during the same period in 2011. The growth in free cash flow primarily reflects reduced capital expenditures. The Company defines free cash flow as net cash provided by operating activities less capital expenditures, equity investments and development advances. For the quarter ended March 31, 2012, cash provided by operating activities was $228 million, compared with $229 million in the prior year period.
BUSINESS UNIT RESULTS
Lodging (Wyndham Hotel Group)
Revenues were $185 million in the first quarter of 2012, an increase of 24%, compared with the first quarter of 2011. The increase reflects domestic RevPAR gains of 9%, as part of a total system RevPAR improvement of 7%, revenues associated with the recently opened Wyndham Grand hotel in Orlando, and higher inter-segment licensing fees for use of the Wyndham brand trade name. The revenue increase also includes $10 million of reclassifications, primarily related to certain reservation fees, which had no impact on Adjusted EBITDA.
Adjusted EBITDA was $49 million, an increase of 23% compared with the first quarter of 2011, largely reflecting the revenue increases discussed above, partially offset by the operating costs associated with the recently opened Wyndham Grand hotel and higher marketing costs. Excluding the higher inter-segment licensing fees, Adjusted EBITDA increased by 13%.
As of March 31, 2012, the Company's hotel system consisted of over 7,150 properties and approximately 609,300 rooms. The development pipeline included approximately 840 hotels and 108,200 rooms, of which 56% were new construction and 55% were international.
Vacation Exchange and Rentals (Wyndham Exchange & Rentals)
Revenues were $361 million in the first quarter of 2012, compared to $356 million in the first quarter of 2011. In constant currency and excluding the impact of acquisitions, revenues were flat.
Exchange revenues were $188 million, a decrease of 3% compared with the first quarter of 2011, primarily due to a 2% decline in the average number of members resulting from the non-renewal of an affiliation agreement. In constant currency, exchange revenues were down 2% and exchange revenue per member was flat.
Vacation rental revenues were $159 million, a 6% increase compared with the first quarter of 2011. Excluding the impact of foreign currency and acquisitions, vacation rental revenues were up 3% primarily due to a 2% increase in vacation rental transactions. Average net price per vacation rental remained flat.
Adjusted EBITDA for the first quarter of 2012 was $93 million, flat compared with the prior-year period. Excluding the impact of foreign currency and acquisitions, Adjusted EBITDA declined by 2%, reflecting the continued economic challenges in Europe.
Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $501 million in the first quarter of 2012, an 11% increase over the first quarter of 2011, primarily reflecting increased vacation ownership interest (VOI) sales.
Gross VOI sales were $384 million in the first quarter of 2012, up 20% from the first quarter of 2011, primarily reflecting a 10% increase in volume per guest and an 8% increase in tour flow.
Adjusted EBITDA for the first quarter of 2012 was $103 million, a 7% increase compared with the first quarter of 2011. Excluding the higher inter-segment licensing fee paid for the use of the Wyndham brand trade name, Adjusted EBITDA increased by 11%, reflecting contributions from increased VOI sales.
Other Items
-- The Board of Directors approved a $750 million increase in the Company's
share repurchase program.
-- The Company repurchased approximately 3.6 million shares of common stock
for $150 million during the first quarter of 2012 at an average price of
$42.05, and an additional 850,000 shares for $40 million at an average
price of $46.85 through April 24, 2012. The Company has $940 million
remaining on its current share repurchase authorization, including the
$750 million increase mentioned above.
-- Net interest expense in the first quarter of 2012 was $31 million,
compared to $30 million in the first quarter of 2011.
-- During the quarter, the Company purchased $207 million of our 9.875%
2014 senior notes and $443 million of our 6.0% 2016 senior notes. We
also issued $300 million of 5 year notes at 2.95% and $650 million of 10
year notes at 4.25%. A portion of the proceeds was used to reduce
revolver borrowings by approximately $170 million.
Balance Sheet Information as of March 31, 2012:
-- Cash and cash equivalents of approximately $240 million, compared with
$142 million at December 31, 2011
-- Vacation ownership contract receivables, net, of $2.8 billion, unchanged
from December 31, 2011
-- Vacation ownership and other inventory of approximately $1.1 billion,
unchanged from December 31, 2011
-- Securitized vacation ownership debt of $2.0 billion, compared with $1.9
billion at December 31, 2011
-- Long-term debt of $2.3 billion, compared with $2.2 billion at December
31, 2011. The remaining borrowing capacity on the revolving credit
facility was $942 million, compared with $771 million as of December 31,
2011
A schedule of debt is included in Table 5 of this press release.
Outlook
For the full year 2012, the Company:
-- Reiterates Revenues of approximately $4.425 - $4.6 billion
-- Reiterates Adjusted EBITDA of approximately $1.030 - $1.055 billion
-- Raises Adjusted EPS Guidance to $3.00 - $3.15 from $2.85 - $3.00
-- Reduces diluted shares to 149 million from 153 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, these assumptions and our guidance may change materially.
Conference Call Information
Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Wednesday, April 25, 2012 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 April 25, 2012. The conference call may also be accessed by dialing (800) 369-2052 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 April 25, 2012, at (800) 839-5569.
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. 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 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 our reported results.
About Wyndham Worldwide Corporation
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 over 7,150 hotels with approximately 609,300 rooms worldwide. Wyndham Exchange & Rentals offers leisure travelers, including its 3.7 million members, access to approximately 100,000 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 160 vacation ownership resorts serving over 813,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 27,800 employees globally.
For more information about Wyndham Worldwide, 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, share repurchases 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 17, 2012. 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 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 Worldwide for the three months ended March 31, 2012 and 2011:
Three Months Ended March 31,
----------------------------
2012 2011
---- ----
Net Revenues EBITDA Net Revenues EBITDA
------------ ------ ------------ ------
Lodging $185 $49 $149 $27 (e)
Vacation Exchange and Rentals 361 95 (c) 356 93
Vacation Ownership 501 103 450 97 (f)
--- --- --- ---
Total Reportable Segments 1,047 247 955 217
Corporate and Other (a) (b) (11) (21) (3) (14)
Total Company $1,036 $226 $952 $203
====== ==== ==== ====
Reconciliation of EBITDA to Net Income attributable to Wyndham Worldwide
------------------------------------------------------------------------
EBITDA $226 $203
Depreciation and amortization 45 45
Interest expense 33 32
Early extinguishment of debt 106 (d) 12 (g)
Interest income (2) (2)
--- ---
Income before income taxes 44 116
Provision for income taxes 13 44
--- ---
Net income 31 72
Net loss attributable to noncontrolling interest 1 -
Net income attributable to Wyndham Worldwide $32 $72
=== ===
__________
(a) Includes the elimination of transactions between segments.
(b) Includes $4 million and $11 million of a net benefit during the three months ended March 31, 2012 and 2011, respectively, related to the resolution of and adjustment to certain contingent liabilities and assets resulting from our separation from Cendant.
(c) Includes a $2 million benefit related to 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) Includes a non-cash impairment charge of $13 million to reduce the value of an international joint venture.
(f) Includes a $1 million benefit for the reversal of costs incurred as a result of various strategic initiatives commenced by the Company during 2008.
(g) Represents costs incurred for the early repurchase of a portion of the Company's convertible notes.
The following tables summarize net revenues and Adjusted EBITDA for reportable segments for the three months ended March 31, 2012 and 2011 (for a description of adjustments by segment, see Table 7):
Three Months Ended March 31,
----------------------------
2012 2011
---- ----
Adjusted Adjusted
Net Revenues EBITDA Net Revenues EBITDA
------------ ------ ------------ ------
Lodging $185 $49 $149 $40
Vacation Exchange and Rentals 361 93 356 93
Vacation Ownership 501 103 450 96
--- --- --- ---
Total Reportable Segments 1,047 245 955 229
Corporate and Other (11) (25) (3) (25)
Total Company $1,036 $220 $952 $204
====== ==== ==== ====
Table 2
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
Three Months Ended
March 31,
---------
2012 2011
---- ----
Net revenues
Service and membership fees $504 $495
Vacation ownership interest sales 271 222
Franchise fees 118 101
Consumer financing 103 102
Other 40 32
Net revenues 1,036 952
----- ---
Expenses
Operating 442 411
Cost of vacation ownership
interests 28 32
Consumer financing interest 23 23
Marketing and reservation 167 137
General and administrative(a) 153 140
Asset impairments - 13 (b)
Restructuring - (1) (c)
Depreciation and amortization 45 45
Total expenses 858 800
--- ---
Operating income 178 152
Other income, net (3) (d) (6) (e)
Interest expense 33 32
Early extinguishment of debt 106 (f) 12 (g)
Interest income (2) (2)
--- ---
Income before income taxes 44 116
Provision for income taxes 13 44
--- ---
Net income 31 72
Net loss attributable to
noncontrolling interest 1 -
--- ---
Net income attributable to Wyndham
Worldwide $32 $72
=== ===
Earnings per share
Basic $0.22 $0.42
Diluted 0.21 0.41
Weighted average shares outstanding
Basic 146 173
Diluted 149 179
__________
(a) Includes $4 million and $7 million of a net benefit during the three months ended March 31,
2012 and 2011, respectively, related to the resolution of and adjustment to certain contingent
liabilities and assets resulting from our separation from Cendant.
(b) Represents a non-cash impairment charge related to a write-down of an international joint
venture at the Company's lodging business.
(c) Relates to the reversal of costs incurred as a result of various strategic initiatives
commenced by the Company during 2008.
(d) 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.
(e) Includes $4 million of a gain related to the redemption of a preferred stock investment
allocated to the Company in connection with our separation from Cendant.
(f) 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.
(g) Represents costs incurred for the early repurchase of a portion of the Company's convertible
notes.
Table 3
(1 of 3)
Wyndham Worldwide Corporation
OPERATING STATISTICS
Year Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Lodging (a)
Number of Rooms 2012 609,300 N/A N/A N/A N/A
2011 609,600 612,900 611,200 613,100 N/A
2010 593,300 606,800 605,700 612,700 N/A
2009 588,500 590,200 590,900 597,700 N/A
RevPAR 2012 $29.73 N/A N/A N/A N/A
2011 $27.71 $35.38 $39.49 $30.65 $33.34
2010 $25.81 $32.25 $37.14 $29.18 $31.14
2009 $27.69 $32.38 $34.81 $26.47 $30.34
Vacation Exchange and Rentals
Average Number
of Members (in
000s) 2012 3,684 N/A N/A N/A N/A
2011 3,766 3,755 3,744 3,734 3,750
2010 3,746 3,741 3,766 3,759 3,753
2009 3,789 3,795 3,781 3,765 3,782
Exchange Revenue
Per Member 2012 $204.56 N/A N/A N/A N/A
2011 $205.64 $178.46 $172.38 $161.68 $179.59
2010 $201.93 $172.20 $173.44 $162.59 $177.53
2009 $194.83 $174.22 $173.90 $163.89 $176.73
Vacation Rental
Transactions
(in 000s) (b) 2012 418 N/A N/A N/A N/A
2011 398 328 370 250 1,347
2010 291 297 322 253 1,163
2009 273 231 264 196 964
Average Net
Price Per
Vacation
Rental(b) 2012 $379.40 N/A N/A N/A N/A
2011 $377.71 $549.09 $701.81 $497.04 $530.78
2010 $361.17 $387.01 $500.31 $449.12 $425.38
2009 $353.15 $471.74 $594.34 $499.66 $477.38
Vacation Ownership
Gross Vacation
Ownership
Interest (VOI)
Sales (in 000s)
(c) 2012 $384,000 N/A N/A N/A N/A
2011 $319,000 $412,000 $455,000 $409,000 $1,595,000
2010 $308,000 $371,000 $412,000 $373,000 $1,464,000
2009 $280,000 $327,000 $366,000 $343,000 $1,315,000
Tours (d) 2012 148,000 N/A N/A N/A N/A
2011 137,000 177,000 197,000 173,000 685,000
2010 123,000 163,000 187,000 160,000 634,000
2009 137,000 164,000 173,000 142,000 617,000
Volume Per Guest
(VPG) (d) 2012 $2,414 N/A N/A N/A N/A
2011 $2,192 $2,227 $2,197 $2,296 $2,229
2010 $2,334 $2,156 $2,081 $2,214 $2,183
2009 $1,866 $1,854 $1,944 $2,210 $1,964
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) and two tuck-in acquisitions (third quarter 2011)
from the acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis.
(c) Includes gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) beginning in the first quarter of 2010 (see Table 9 for a reconciliation of gross VOI sales to vacation
ownership interest sales).
(d) Includes the impact of WAAM related tours beginning in the first quarter of 2010.
Table 3
(2 of 3)
Wyndham Worldwide Corporation
ADDITIONAL DATA
Year Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Lodging (a)
Number of
Properties 2012 7,150 N/A N/A N/A N/A
2011 7,190 7,220 7,190 7,210 N/A
2010 7,090 7,160 7,150 7,210 N/A
2009 6,990 7,020 7,040 7,110 N/A
Vacation Ownership
Provision for
Loan Losses (in
000s) (b) 2012 $96,000 N/A N/A N/A N/A
2011 $79,000 $80,000 $96,000 $83,000 $339,000
2010 $86,000 $87,000 $85,000 $82,000 $340,000
2009 $107,000 $122,000 $117,000 $103,000 $449,000
Sales under WAAM
(in 000s) (c) 2012 $17,000 N/A N/A N/A N/A
2011 $18,000 $19,000 $38,000 $31,000 $106,000
2010 $5,000 $13,000 $20,000 $14,000 $51,000
WAAM Commission
Revenues (in
000s) 2012 $12,000 N/A N/A N/A N/A
2011 $10,000 $11,000 $23,000 $21,000 $65,000
2010 $3,000 $8,000 $12,000 $9,000 $31,000
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 for which the Company earns commission revenue (WAAM Commission Revenues). The commission revenue earned on these sales is included in
service fees and membership revenues on the Consolidated Statements of Income. The Company implemented this sales model during the first quarter of 2010 and, as such, there is no historical
data prior to 2010.
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 or (iii) properties managed under a joint venture.
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Average Occupancy Rate: Represents the percentage of available rooms occupied during the period.
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Average Daily Rate (ADR): Represents the average rate charged for renting a lodging room for one day.
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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.
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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 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.
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Vacation Rental Transactions: Represents the number of transactions that are generated in connection with customers booking their vacation rental stays through us. One rental transaction is
recorded for each standard one-week rental.
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Average Net Price Per Vacation Rental: Represents the net rental price generated from renting vacation properties to customers and other related rental servicing fees divided by the number of
vacation rental transactions.
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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. We believe that Gross VOI sales provides an
enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Tours: Represents the number of tours taken by guests in our efforts to sell vacation ownership interests.
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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 2009-2012. We believe
that VPG provides an enhanced understanding of the performance of our vacation ownership business because it directly measures the efficiency of this business' tour selling efforts during a
given reporting period.
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General
Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods.
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Table 4
Wyndham Worldwide Corporation
REVENUE DETAIL BY REPORTABLE SEGMENT
(In millions)
2012 2011
---- ----
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
--- --- --- --- ---- --- --- --- --- ----
Lodging
Royalties and Franchise Fees $62 N/A N/A N/A N/A $58 $75 $85 $66 $284
Marketing, Reservation and Wyndham Rewards Revenues
(a) 68 N/A N/A N/A N/A 54 75 94 76 299
Hotel Management Reimbursable Revenues (b) 21 N/A N/A N/A N/A 19 19 21 20 79
Inter-segment Trademark Fees (c) 8 N/A N/A N/A N/A 1 2 3 4 10
Owned Hotel Revenues 8 N/A N/A N/A N/A - - - 5 5
Ancillary Revenues (d) 18 N/A N/A N/A N/A 17 19 19 17 72
Total Lodging 185 N/A N/A N/A N/A 149 190 222 188 749
--- --- --- --- --- --- --- ---
Vacation Exchange and Rentals
Exchange Revenues 188 N/A N/A N/A N/A 194 168 161 150 673
Rental Revenues 159 N/A N/A N/A N/A 150 180 260 125 715
Ancillary Revenues (e) 14 N/A N/A N/A N/A 12 13 15 16 56
Total Vacation Exchange and Rentals 361 N/A N/A N/A N/A 356 361 436 291 1,444
----------- --- --- --- --- --- --- --- ---
Vacation Ownership
Vacation Ownership Interest Sales 271 N/A N/A N/A N/A 222 313 320 295 1,150
Consumer Financing 103 N/A N/A N/A N/A 102 103 105 105 415
Property Management Fees 110 N/A N/A N/A N/A 110 108 105 101 424
WAAM Commissions 12 N/A N/A N/A N/A 10 11 23 21 65
Ancillary Revenues (f) 5 N/A N/A N/A N/A 6 6 6 5 23
Total Vacation Ownership 501 N/A N/A N/A N/A 450 541 559 527 2,077
--- --- --- --- --- --- --- ---
Total Reportable Segments $1,047 N/A N/A N/A N/A $955 $1,092 $1,217 $1,006 $4,270
====== === === === === ==== ====== ====== ====== ======
2010 2009
---- ----
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
--- --- --- --- ---- --- --- --- --- ----
Lodging
Royalties and Franchise Fees $52 $69 $82 $62 $265 $57 $68 $72 $57 $254
Marketing, Reservation and Wyndham Rewards Revenues
(a) 50 65 76 60 251 54 66 73 53 246
Hotel Management Reimbursable Revenues (b) 21 20 18 18 77 22 23 21 19 85
Ancillary Revenues (d) 21 24 27 23 95 21 17 17 20 75
Total Lodging 144 178 203 163 688 154 174 183 149 660
--- --- --- --- --- --- --- ---
Vacation Exchange and Rentals
Exchange Revenues 189 161 163 153 666 185 165 164 154 668
Rental Revenues 105 115 161 114 495 96 109 157 98 460
Ancillary Revenues (e) 6 5 6 15 32 6 6 6 6 24
Total Vacation Exchange and Rentals 300 281 330 282 1,193 287 280 327 258 1,152
----------- --- --- --- --- --- --- --- ---
Vacation Ownership
Vacation Ownership Interest Sales 217 271 308 276 1,072 239 242 285 287 1,053
Consumer Financing 105 106 107 107 425 109 109 108 109 435
Property Management Fees 100 100 104 101 405 91 94 96 95 376
WAAM Commissions (g) 3 8 12 8 31 - - - - -
Ancillary Revenues (f) 19 20 2 5 46 23 22 19 17 81
Total Vacation Ownership 444 505 533 497 1,979 462 467 508 508 1,945
--- --- --- --- --- --- --- ---
Total Reportable Segments $888 $964 $1,066 $942 $3,860 $903 $921 $1,018 $915 $3,757
==== ==== ====== ==== ====== ==== ==== ====== ==== ======
Note: Full year amounts may not add 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 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.
(g) The Company implemented the WAAM sales model during the first quarter of 2010 and, as such, there is no historical data for 2009.
Table 5
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
March 31, December 31, September 30, June 30, March 31,
2012 2011 2011 2011 2011
---- ---- ---- ---- ----
Securitized vacation ownership debt (a)
Term notes $1,896 $1,625 $1,512 $1,446 $1,666
Bank conduit facility (b) 104 237 218 242 148
--- --- --- --- ---
Securitized vacation ownership debt (c) 2,000 1,862 1,730 1,688 1,814
Less: Current portion of securitized vacation ownership debt 206 196 179 190 216
Long-term securitized vacation ownership debt $1,794 $1,666 $1,551 $1,498 $1,598
====== ====== ====== ====== ======
Debt:
Revolving credit facility (due July 2016) (d) $47 $218 $169 $107 $5
3.50% convertible notes (due May 2012) (e) 44 36 27 32 41
9.875% senior unsecured notes (due May 2014) (f) 42 243 243 242 241
6.00% senior unsecured notes (due December 2016) (g) 362 811 812 803 797
2.95% senior unsecured notes (due March 2017) (h) 298 - - - -
5.75% senior unsecured notes (due February 2018) (i) 247 247 247 247 247
7.375% senior unsecured notes (due March 2020) (j) 248 247 247 247 247
5.625% senior unsecured notes (due March 2021) (k) 245 245 245 245 245
4.25% senior unsecured notes (due March 2022) (l) 643 - - - -
Vacation rentals capital leases 103 102 108 120 120
Other 1 4 1 1 28
--- --- --- --- ---
Total debt 2,280 2,153 2,099 2,044 1,971
Less: Current portion of debt 54 46 37 43 12
Long-term debt $2,226 $2,107 $2,062 $2,001 $1,959
====== ====== ====== ====== ======
__________
(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 June 2013 and borrowing capacity of $600 million. As of March 31, 2012, this facility had remaining borrowing capacity of $496 million.
(c) This debt is collateralized by $2,622 million, $2,638 million, $2,502 million, $2,672 million and $2,778 million of underlying vacation ownership contract receivables and related assets as of March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.
(d) Represents a $1.0 billion revolving credit facility that expires on July 15, 2016. As of March 31, 2012, the Company had $11 million of outstanding letters of credit and a remaining borrowing capacity of $942 million.
(e) Represents convertible notes issued by the Company during May 2009. The balance at March 31, 2012 represents $12 million aggregate principal plus a $32 million liability related to a bifurcated conversion feature.
(f) Represents senior unsecured notes issued by the Company during May 2009. The balance as of March 31, 2012 represents $43 million aggregate principal less $1 million of unamortized discount.
(g) Represents senior unsecured notes issued by the Company during December 2006. The balance as of March 31, 2012 represents $357 million aggregate principal less $1 million of unamortized discount, plus $6 million of unamortized gains from the settlement of a derivative.
(h) Represents senior unsecured notes issued by the Company during March 2012. The balance as of March 31, 2012 represents $300 million aggregate principal less $2 million of unamortized discount.
(i) Represents senior unsecured notes issued by the Company during September 2010. The balance as of March 31, 2012 represents $250 million aggregate principal less $3 million of unamortized discount.
(j) Represents senior unsecured notes issued by the Company during February 2010. The balance as of March 31, 2012 represents $250 million aggregate principal less $2 million of unamortized discount.
(k) Represents senior unsecured notes issued by the Company during March 2011. The balance as of March 31, 2012 represents $250 million aggregate principal less $5 million of unamortized discount.
(l) Represents senior unsecured notes issued by the Company during March 2012. The balance as of March 31, 2012 represents $650 million aggregate principal less $7 million of unamortized discount.
Table 6
Wyndham Worldwide Corporation
BRAND SYSTEM DETAILS
As of and For the Three Months Ended March 31, 2012
---------------------------------------------------
Brand Number of Properties Number of Rooms Average Average Daily Average Revenue
Occupancy Rate Rate (ADR) Per Available
Room (RevPAR)
--- ------------ ------------
Lodging
Wyndham Hotels and Resorts 98 25,901 55.7% $111.04 $61.87
TRYP by Wyndham 90 12,904 51.2% $96.12 $49.25
Wingate by Wyndham 161 14,750 57.7% $80.22 $46.26
Hawthorn Suites by Wyndham 78 7,400 59.3% $73.85 $43.83
Ramada 843 114,251 47.6% $75.97 $36.19
Baymont 255 21,425 44.6% $60.44 $26.98
Days Inn 1,834 148,235 42.6% $59.00 $25.12
Super 8 2,253 142,686 47.2% $50.56 $23.89
Howard Johnson 440 44,090 44.3% $58.98 $26.10
Travelodge 434 32,602 42.8% $61.39 $26.27
Microtel Inns & Suites 310 22,086 49.1% $58.37 $28.69
Knights Inn 350 21,867 36.5% $40.23 $14.69
Dream 5 990 75.2% $194.51 $146.20
Night 1 72 90.6% $203.86 $184.77
Total Lodging 7,152 609,259 46.2% $64.41 $29.73
Vacation Ownership
Wyndham Vacation Ownership
resorts 165 20,764 N/A N/A N/A
--- ------
Total Wyndham Worldwide 7,317 630,023
============ =====
As of and For the Three Months Ended March 31, 2011
---------------------------------------------------
Brand Number of Properties Number of Rooms Average Average Daily Average Revenue
Occupancy Rate Rate (ADR) Per Available
Room (RevPAR)
--- ------------ ------------
Lodging
Wyndham Hotels and Resorts 94 25,521 53.3% $106.57 $56.84
Tryp by Wyndham 92 13,420 48.3% $111.27 $53.75
Wingate by Wyndham 165 15,134 55.8% $78.31 $43.68
Hawthorn Suites by Wyndham 75 7,028 57.6% $74.22 $42.73
Ramada 888 117,278 45.4% $73.37 $33.30
Baymont 261 21,886 41.2% $59.02 $24.33
Days Inn 1,877 150,214 40.5% $58.19 $23.58
Super 8 2,185 137,260 43.9% $51.41 $22.56
Howard Johnson 464 46,080 41.1% $57.28 $23.56
Travelodge 434 31,920 40.8% $59.70 $24.34
Microtel Inns & Suites 316 22,528 46.3% $55.03 $25.46
Knights Inn 339 20,679 33.7% $40.75 $13.74
Dream 3 566 73.1% $177.95 $130.02
Night 1 72 93.8% $298.78 $280.20
Total Lodging 7,194 609,586 43.5% $63.66 $27.71
Vacation Ownership
Wyndham Vacation Ownership
resorts 162 20,736 N/A N/A N/A
--- ------
Total Wyndham Worldwide 7,356 630,322
============ =====
_______________
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
NON-GAAP RECONCILIATION
(In millions)
Reported Legacy Allowance Adjusted
Three months ended March 31, 2012 Net Revenues EBITDA Adjustments (b) Reversal (c) 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
====== ==== === === ====
________________
(a) Includes the elimination of transactions between segments.
(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.
Table 7
(2 of 2)
Wyndham Worldwide
NON-GAAP RECONCILIATION
(In millions)
Reported Legacy Asset Restructuring VAT CTA Adjusted
Three months ended March 31, 2011 EBITDA Adjustments (b) Impairments Costs Adjustments (e) Writeoff (f) EBITDA
Net Revenues
------------
Lodging $149 $27 $ - $13 (c) $ - $ - $ - $40
Vacation Exchange and Rentals 356 93 - - - - - 93
Vacation Ownership 450 97 - - (1) (d) - - 96
--- --- --- --- --- --- --- --- ---
Total Reportable Segments 955 217 - 13 (1) - - 229
Corporate and Other (a) (3) (14) (11) - - - - (25)
--- --- ---
Total Company $952 $203 $(11) $13 $(1) $ - $ - $204
==== ==== ==== === === ================ ======= ====
Three months ended June 30, 2011
Lodging $190 $66 $ - $ - $ - $ - $ - $66
Vacation Exchange and Rentals 361 106 - - 7 (g) (31) - 82
Vacation Ownership 541 130 - - - - - 130
--- --- --- --- --- --- ---
Total Reportable Segments 1,092 302 - - 7 (31) - 278
Corporate and Other (a) (2) (26) 3 - - - - (23)
--- --- ---
Total Company $1,090 $276 $3 $ - $7 $(31) $ - $255
====== ==== === ====== === ==== =========== ====
Three months ended September 30, 2011
Lodging $222 $67 $ - $ - $ - $ - $ - $67
Vacation Exchange and Rentals 436 131 - - - - 4 135
Vacation Ownership 559 149 - - - - - 149
--- --- --- --- --- --- ---
Total Reportable Segments 1,217 347 - - - - 4 351
Corporate and Other (a) (5) (18) (8) - - - - (26)
--- --- ---
Total Company $1,212 $329 $(8) $ - $ - $ - $4 $325
====== ==== === ===== ========= ============= === ====
Three months ended December 31, 2011
Lodging $188 $(3) $ - $44 (h) $ - $ - $ - $41
Vacation Exchange and Rentals 291 38 - - - - - 38
Vacation Ownership 527 139 - - - - - 139
--- --- --- --- --- --- ---
Total Reportable Segments 1,006 174 - 44 - - - 218
Corporate and Other (a) (6) (26) (4) - - - - (30)
--- --- ---
Total Company $1,000 $148 $(4) $44 $ - $ - $ - $188
====== ==== === === ======= =========== =========== ====
Twelve months ended December 31, 2011
Lodging $749 $157 $ - $57 (c) (h) $ - $ - $ - $214
Vacation Exchange and Rentals 1,444 368 - - 7 (g) (31) 4 348
Vacation Ownership 2,077 515 - - (1) (d) - - 514
----- --- --- --- --- --- --- ---
Total Reportable Segments 4,270 1,040 - 57 6 (31) 4 1,076
Corporate and Other (a) (16) (84) (16) - - - - (100)
--- --- ---
Total Company $4,254 $956 $(16) $57 $6 $(31) $4 $976
====== ==== ==== === === ==== === ====
________________
(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 a non-cash impairment charge related to a write-down of an international joint venture at the Company's lodging business.
(d) Relates to the reversal of costs incurred as a result of various strategic initiatives commenced by the Company during 2008.
(e) Relates to a net benefit resulting from a refund of value added taxes.
(f) Relates to the write-off of foreign exchange translation adjustments associated with the liquidation of a foreign entity.
(g) Relates to costs incurred as a result of a strategic initiative commenced by the Company during 2010.
(h) Relates to non-cash impairment charges primarily related to the write-down of certain franchise and management agreements and development advance notes at the Company's lodging business.
Table 8
(1 of 2)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended March 31, 2012
---------------------------------
Legacy Adjustments Allowance Reversal Early Extinguishment of Debt
------------------ ------------------ ----------------------------
As Reported As Adjusted
----------- -----------
Net revenues
Service fees and membership $504 $504
Vacation ownership interest sales 271 271
Franchise fees 118 118
Consumer financing 103 103
Other 40 40
Net revenues 1,036 - - - 1,036
----- --- --- --- -----
Expenses
Operating 442 442
Cost of vacation ownership interests 28 28
Consumer financing interest 23 23
Marketing and reservation 167 167
General and administrative 153 4 (a) 157
Depreciation and amortization 45 45
Total expenses 858 4 - - 862
--- --- --- --- ---
Operating income 178 (4) - - 174
Other income, net (3) 2 (b) (1)
Interest expense 33 33
Early extinguishment of debt 106 (106) (c) -
Interest income (2) (2)
Income before income taxes 44 (4) (2) 106 144
Provision for income taxes 13 (2) (d) - (d) 44 (d) 55
--- --- --- --- ---
Net income 31 (2) (2) 62 89
--- --- --- --- ---
Net loss attributable to noncontrolling interest 1 - - - 1
--- --- --- --- ---
Net income attributable to Wyndham Worldwide $32 $(2) $(2) $62 $90
=== === === === ===
Earnings per share
Basic $0.22 $(0.02) $(0.01) $0.43 $0.61
Diluted 0.21 (0.02) (0.01) 0.42 0.60
Weighted average shares outstanding
Basic 146 146 146 146 146
Diluted 149 149 149 149 149
__________
Note: EPS amounts may not add due to rounding.
(a) Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting from our
separation from Cendant.
(b) Relates to a benefit from the reversal of an allowance associated with a previously divested asset.
(c) 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.
(d) Relates to the tax effect of the adjustment.
Table 8
(2 of 2)
Wyndham Worldwide Corporation
NON-GAAP FINANCIAL INFORMATION
(In millions, except per share data)
Three Months Ended March 31, 2011
---------------------------------
Early Extinguishment of Debt Legacy Adjustments Asset Impairment Restructuring Costs
---------------------------- ------------------ ---------------- -------------------
As Reported As Adjusted
----------- -----------
Net revenues
Service fees and membership $495 $495
Vacation ownership interest sales 222 222
Franchise fees 101 101
Consumer financing 102 102
Other 32 32
Net revenues 952 - - - - 952
--- --- --- --- --- ---
Expenses
Operating 411 411
Cost of vacation ownership interests 32 32
Consumer financing interest 23 23
Marketing and reservation 137 137
General and administrative 140 7 (b) 147
Asset impairment 13 (13) (d) -
Restructuring (1) 1 (e) -
Depreciation and amortization 45 45
Total expenses 800 - 7 (13) 1 795
--- --- --- --- --- ---
Operating income 152 - (7) 13 (1) 157
Other income, net (6) 4 (c) (2)
Interest expense 32 32
Early extinguishment of debt 12 (12) (a) -
Interest income (2) (2)
Income before income taxes 116 12 (11) 13 (1) 129
Provision for income taxes 44 5 (f) (3) (f) 5 (f) (1) (f) 50
--- --- --- --- --- ---
Net income $72 $7 $(8) $8 $ - $79
=== === === === ============ ===
Earnings per share
Basic $0.42 $0.04 $(0.04) $0.04 $ - $0.46
Diluted 0.41 0.04 (0.04) 0.04 - 0.44
Weighted average shares outstanding
Basic 173 173 173 173 173 173
Diluted 179 179 179 179 179 179
__________
Note: EPS amounts may not foot due to rounding.
(a) Relates to costs incurred for the early repurchase of a portion of the Company's 3.50% convertible notes during the first quarter of 2011.
(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 gain on the redemption of a preferred stock investment allocated to the Company in connection with our separation with Cendant.
(d) Relates to a non-cash impairment charge to reduce the value of an international joint venture in the Company's lodging business.
(e) Relates to the reversal of costs incurred as a result of various strategic initiatives commenced by the Company during 2008.
(f) Relates to the tax effect of the adjustments.
Table 9
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION
(In millions)
FREE CASH FLOW
--------------
The Company defines free cash flow as net cash provided by operating activities less capital expenditures, equity investments and development advances and excluding cash payments related to the Company's contingent tax liabilities that it assumed and is responsible for pursuant to
its separation from Cendant. The Company considers free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the acquisition of property and equipment, equity investments and
development advances, can be used for strategic opportunities, including making acquisitions, paying dividends, repurchasing the Company's common stock and strengthening the balance sheet. Analysis of free cash flow also facilitates management's comparisons of the Company's
operating results to its competitors' operating results. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating Wyndham Worldwide is that free cash flow does not represent the total increase or decrease in
the cash balance from operations for the period.
The following table provides more details on the GAAP financial measure that is most directly comparable to the non-GAAP financial measure and the related reconciliation between these financial measures:
Three Months Ended March 31,
----------------------------
2012 2011
---- ----
Net cash provided by operating activities $228 $229
Less: Property and equipment additions (33) (41)
Less: Equity investments and development advances (2) (3)
Free cash flow $193 $185
==== ====
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
----
2012 Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Gross VOI sales $384 N/A N/A N/A N/A
Less: Sales under the WAAM (17) N/A N/A N/A N/A
--- --- --- --- ---
Gross VOI sales, net of WAAM sales 367 N/A N/A N/A N/A
Less: Loan loss provision (96) N/A N/A N/A N/A
Vacation ownership interest sales $271 N/A N/A N/A N/A
==== === === === ===
2011
----
Gross VOI sales $319 $412 $455 $409 $1,595
Less: Sales under the WAAM (18) (19) (38) (31) (106)
--- --- --- --- ----
Gross VOI sales, net of WAAM 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 the WAAM (5) (13) (20) (14) (51)
--- --- --- --- ---
Gross VOI sales, net of WAAM 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
==== ==== ==== ==== ======
2009
----
Gross VOI sales $280 $327 $366 $343 $1,315
Plus: Net effect of percentage-of-completion accounting (a) 67 37 36 47 187
Less: Loan loss provision (107) (122) (117) (103) (449)
Vacation ownership interest sales $239 $242 $285 $287 $1,053
==== ==== ==== ==== ======
_____________
Note: Amounts may not add due to rounding.
(a) Represents the revenue that is deferred under the percentage of completion method of accounting.
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
--- --- --- --- ---------
2012 $27 N/A N/A N/A N/A
2011 $18 $18 $21 $11 $68
2010 $20 $20 $23 $17 $80
2009 $24 $23 $29 $28 $104
_____________
Note: Amounts may not add across due to rounding.
SOURCE Wyndham Worldwide Corporation
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