TRAVEL + LEISURE CO. PARSIPPANY, N.J., April 26, 2017 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended March 31, 2017.
FIRST QUARTER 2017 OPERATING RESULTS
First quarter revenues were $1.3 billion, up 1% compared with the prior year period. Full reconciliations of GAAP results to non-GAAP measures for all reported periods appear in the tables to this press release.
Net income for the first quarter of 2017 was $141 million compared with $96 million for the first quarter of 2016. Diluted earnings per share (EPS) were $1.33 compared with $0.84 for the prior year period. Adjusted net income for the first quarter of 2017, which excludes charges and gains in 2017 and charges in 2016 as detailed in Table 7 of this press release, was $120 million compared with $127 million for the first quarter of 2016, primarily reflecting a higher provision for loan losses and benefits in the prior-year period related to business interruption claims that were absent in the first quarter of 2017. Adjusted diluted EPS was $1.14 compared with $1.12 per share in the prior year period, reflecting the benefit of the Company's share repurchase program.
First quarter EBITDA was $266 million, compared with $267 million in the prior year period. Adjusted EBITDA, which excludes charges in both 2017 and 2016 as detailed in Table 8 of this press release, was $278 million, compared with $291 million in the prior year period, primarily reflecting a higher provision for loan losses and benefits in the prior-year period related to business interruption claims that were absent in the first quarter of 2017.
"Our first quarter results were right in line with our expectations," said Stephen P. Holmes, chairman and CEO. "We're excited by the progress we're making in connecting our customers and brands through Wyndham Rewards to enhance customer acquisition, experience and retention. We expect this to result in stronger growth and greater long-term value for our shareholders this year and for years to come.
"In addition, we are pleased to welcome Mike Brown as the new CEO and president of our vacation ownership business," continued Mr. Holmes. "Mike is a 25-year hospitality industry veteran and brings an ideal combination of strategic vision, operational expertise, and industry knowledge to the role. I am confident that Mike is the right leader to take Wyndham Vacation Ownership to the next level."
For the three months ended March 31, 2017, net cash provided by operating activities was $238 million, compared with $261 million in the prior year period. The decrease primarily reflects changes in the timing of inventory purchases.
Free cash flow was $203 million for the three months ended March 31, 2017, compared with $218 million for the same period in 2016, primarily reflecting the changes in net cash provided by operating activities. The Company defines free cash flow as net cash provided by operating activities less capital expenditures.
FIRST QUARTER 2017 BUSINESS UNIT RESULTS
Hotel Group
Revenues were $298 million in the first quarter of 2017, compared with $295 million in the first quarter of 2016. EBITDA was $85 million in the first quarter compared with $84 million in the prior-year quarter, growing 2% on a currency-neutral basis. Results reflect higher franchise fees and growth in the Wyndham Rewards credit card program, partially offset by lower occupancy at the Company's owned hotel in Puerto Rico due to consumer concerns about the Zika virus.
First quarter domestic same-store RevPAR increased 1.7% compared with the first quarter of 2016. In constant currency, total system-wide same-store RevPAR increased 2.2%.
As of March 31, 2017, the Company's hotel system consisted of approximately 8,100 properties and 699,800 rooms, a 3.0% net room increase compared with the first quarter of 2016. The development pipeline increased to 1,130 hotels and approximately 143,100 rooms, of which 59% were international and 68% were new construction.
Destination Network
Revenues were $391 million in the first quarter of 2017, compared with $385 million in the first quarter of 2016, an increase of 2%. In constant currency and excluding acquisitions, revenues increased 1%.
Vacation rental revenues were $184 million compared with $183 million in the prior year quarter. In constant currency and excluding acquisitions, vacation rental revenues increased 1%, reflecting a 2.8% increase in transaction volume partially offset by a 2.0% decline in the average net price per rental. Transaction volume benefited from capacity increases across the Company's U.K.-based cottages and parks brands and Denmark-based Novasol brand, partially offset by the impact from the timing of the Easter holiday. Average net price per rental declined due to the mix impact of growth in the Company's more modestly priced brands and the timing of the Easter holiday.
Exchange revenues were $183 million compared with $182 million in the prior year quarter. In constant currency, exchange revenue per member increased 0.8% and the average number of members declined 0.6%.
EBITDA was $102 million in the first quarter of 2017, including $2 million from acquisitions. This compares with first quarter 2016 EBITDA of $81 million or adjusted EBITDA of $105 million. 2016 adjusted EBITDA excluded a $24 million loss related to a currency devaluation. First quarter year-over-year EBITDA and adjusted EBITDA comparisons reflect the absence of a benefit of $3 million from business disruption claims received in the first quarter of 2016, as well as the unfavorable impact of the timing of the Easter holiday.
Vacation Ownership
Revenues were $648 million in the first quarter of 2017, compared with $641 million in the first quarter of 2016.
Gross VOI sales increased 3% in the first quarter of 2017. Volume per guest (VPG) was up 4.9%, reflecting both a higher average close rate and transaction size. Tour flow declined 1.7% due to the closure of sales offices as part of a restructuring in the second half of last year.
EBITDA was $118 million in the first quarter of 2017 compared with $136 million in the prior year quarter. Adjusted EBITDA was $124 million in the first quarter of 2017. First quarter year-over-year EBITDA and adjusted EBITDA results reflect higher gross VOI sales offset by a higher provision for loan losses and the absence of a $6 million benefit from business interruption insurance claims received in the first quarter of 2016.
OTHER ITEMS
-- The Company repurchased 1.9 million shares of common stock for $150
million during the first quarter of 2017 at an average price of $80.93.
From April 1 through April 25, 2017, the Company repurchased an
additional 0.4 million shares for $36 million.
-- Net interest expense in the first quarter of 2017 was $31 million, flat
compared with the first quarter of 2016.
-- Depreciation and amortization in the first quarter of 2017 was $63
million, compared with $62 million in the first quarter of 2016.
Balance Sheet Information as of March 31, 2017:
-- Cash and cash equivalents of $222 million, compared with $185 million at
December 31, 2016
-- Vacation ownership contract receivables, net of $2.8 billion, unchanged
from December 31, 2016
-- Vacation ownership and other inventory of $1.4 billion, unchanged from
December 31, 2016
-- Securitized vacation ownership debt of $2.1 billion, unchanged from
December 31, 2016
-- Long-term debt of $3.6 billion, compared with $3.4 billion at December
31, 2016. The remaining borrowing capacity on the revolving credit
facility, net of commercial paper borrowings, was $1.3 billion as of
March 31, 2017, compared with $1.1 billion at December 31, 2016.
A schedule of debt is included in Table 12 of this press release.
OUTLOOK
Note to Editors: The guidance excludes possible future share repurchases, while analysts' estimates often include share repurchases. This results in discrepancies between Company guidance and database consensus forecasts.
The Company provides the following guidance for the full year 2017:
-- Reiterates revenues of approximately $5.80 billion to $5.95 billion
-- Updates adjusted net income to approximately $631 million to $652
million from $637 million to $658 million, reflecting higher interest
expense from a new long-term debt issuance in the first quarter 2017
that replaced lower cost borrowings
-- Reiterates adjusted EBITDA of approximately $1.41 billion to $1.44
billion
-- Updates adjusted diluted EPS to approximately $5.98 to $6.18 based on a
diluted share count of 105.5 million from $5.90 to $6.10 based on a
diluted share count of 108 million
In determining adjusted net income, adjusted EBITDA and adjusted EPS, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. A description of the adjustments that have been applicable for the reported periods in determining adjusted net income, adjusted EBITDA and adjusted EPS are reflected in Tables 7 and 8 of this press release. The Company is providing an outlook for net income, EBITDA and EPS only on a non-GAAP basis because the Company is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of these adjustments or other potential adjustments that may arise in the future during the outlook period, which can be dependent on future events that may not be reliably predicted. See Table 10 for certain non-GAAP information concerning the outlook period.
The Company will post full guidance information on its website following the conference call.
CONFERENCE CALL INFORMATION
Wyndham Worldwide Corporation will hold a conference call with investors to discuss the Company's results, outlook and guidance on Wednesday, April 26, 2017 at 8:30 a.m. ET. Listeners can access the webcast live through the Company's website at http://www.wyndhamworldwide.com/investors/. The conference call may also be accessed by dialing 800-862-9098 and providing the pass code "WYNDHAM." Listeners are urged to call at least 10 minutes prior to the scheduled start time. An archive of this webcast will be available on the website for approximately 90 days beginning at 12:00 p.m. ET on April 26, 2017. A telephone replay will be available for approximately 10 days beginning at 12:00 p.m. ET on April 26, 2017 at 800-839-4012.
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 operating performance. Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring. Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of the press release.
ABOUT WYNDHAM WORLDWIDE
Wyndham Worldwide (NYSE: WYN) is one of the largest global hospitality companies, providing travelers with access to a collection of trusted hospitality brands in hotels, vacation ownership, and unique accommodations including vacation exchange, holiday parks, and managed home rentals. With a collective inventory of nearly 130,000 places to stay across more than 110 countries on six continents, Wyndham Worldwide and its 38,000 associates welcomes people to experience travel the way they want. This is enhanced by Wyndham Rewards®, the Company's re-imagined guest loyalty program across its businesses, which is making it simpler for members to earn more rewards and redeem their points faster. For more information, please visit www.wyndhamworldwide.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that convey management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements and may be identified by terminology such as "will," "expect," believe," "plan," "anticipate," "goal," "future," "outlook," guidance," "target," "estimate" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings, cash flow and related financial and operating measures.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war, terrorist activity or political strife, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Annual Report on Form 10-K, filed with the SEC on February 17, 2017. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.
Wyndham Worldwide Corporation
Earnings Release Schedules
Quarter One - March 31, 2017
Table of Contents
Table No.
---------
Consolidated Statements of Income (Unaudited) 1
Operating Results of Reportable Segments 2
Operating Statistics 3
Condensed Consolidated Statements of Cash Flows and Reconciliation of Free Cash Flows (Unaudited) 4
Revenue Detail by Reportable Segment 5
Brand System Details 6
Non-GAAP Reconciliation of Adjusted Net Income and EPS 7
Non-GAAP Reconciliation of Adjusted EBITDA by Reportable Segment 8
Non-GAAP Reconciliation of Gross VOI Sales 9
Non-GAAP Reconciliation of 2017 Outlook 10
Non-GAAP Reconciliation - Constant Currency, Currency Neutral and Acquisitions 11
Schedule of Debt 12
Table 1
Wyndham Worldwide Corporation
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended
March 31,
---------
2017 2016
---- ----
Net revenues
Service and
membership
fees $636 $634
Vacation
ownership
interest
sales 351 342
Franchise fees 141 138
Consumer
financing 111 107
Other 80 82
Net revenues 1,319 1,303
----- -----
Expenses
Operating 601 613
Cost of
vacation
ownership
interests 36 37
Consumer
financing
interest 18 18
Marketing and
reservation 195 192
General and
administrative 193 186
Asset
impairments 5 -
Restructuring 7 -
Depreciation
and
amortization 63 62
Total expenses 1,118 1,108
----- -----
Operating income 201 195
Other (income)/expense, net (2) (10)
Interest expense 33 33
Early extinguishment of debt - 11
Interest income (2) (2)
--- ---
Income before income taxes 172 163
Provision for income taxes 31 67
--- ---
Net income $141 $96
==== ===
Earnings per share
Basic $1.34 $0.85
Diluted 1.33 0.84
Weighted average shares outstanding
Basic 105 113
Diluted 106 114
Table 2
Wyndham Worldwide Corporation
OPERATING RESULTS OF REPORTABLE SEGMENTS
(In millions)
In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and "EBITDA", which is defined as net income before depreciation and amortization, interest expense (excluding
consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes, each of which is presented on the Company's Consolidated Statements of Income. The Company also uses
adjusted EBITDA as a financial measure of its operating performance. The Company believes that EBITDA and adjusted EBITDA are useful measures of assessing performance of the Company and for the Company's segments which, when considered with
GAAP measures, give a more complete understanding of its operating performance and assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by
adjusting for certain items which may be recurring or nonrecurring and which in our view do not necessarily reflect ongoing operating performance. We also internally use these measures to assess our operating performance, both in absolute
terms and in comparison to other companies, and in evaluating or making selected compensation decisions. These supplemental disclosures are in addition to GAAP reported measures. The Company's presentation of EBITDA and adjusted EBITDA may
not be comparable to similarly-titled measures used by other companies.
The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile net income to EBITDA for the three months ended March 31, 2017 and 2016:
Three Months Ended March 31,
----------------------------
2017 2016
---- ----
Net Revenues EBITDA Net Revenues EBITDA
------------ ------ ------------ ------
Hotel Group $298 $85 $295 $84
Destination Network 391 102 385 81
Vacation Ownership 648 118 641 136
--- --- --- ---
Total Reportable Segments 1,337 305 1,321 301
Corporate and Other (a) (18) (39) (18) (34)
Total Company $1,319 $266 $1,303 $267
====== ==== ====== ====
Reconciliation of net income to EBITDA
--------------------------------------
Three Months Ended March 31,
----------------------------
2017 2016
---- ----
Net income $141 $96
Provision for income taxes 31 67
Depreciation and amortization 63 62
Interest expense 33 33
Early extinguishment of debt - 11
Interest income (2) (2)
EBITDA $266 $267
==== ====
(a) Includes the elimination of transactions between segments.
The following tables summarize net revenues and adjusted EBITDA for the Company's reportable segments for the three months ended March 31, 2017 and 2016 (for a description of adjustments and reconciliation by segment, see Table 8):
Three Months Ended March 31,
----------------------------
2017 2016
---- ----
Adjusted Adjusted
Net Revenues EBITDA Net Revenues EBITDA
------------ ------ ------------ ------
Hotel Group $298 $85 $295 $84
Destination Network 391 102 385 105
Vacation Ownership 648 124 641 136
--- --- --- ---
Total Reportable Segments 1,337 311 1,321 325
Corporate and Other (a) (18) (33) (18) (34)
---
Total Company $1,319 $278 $1,303 $291
====== ==== ====== ====
Table 3
(1 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
The following operating statistics are the drivers of our revenues and therefore provide an enhanced understanding of our businesses:
Year Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Hotel Group(a)
Number of Rooms 2017 699,800 N/A N/A N/A N/A
2016 679,100 683,300 689,800 697,600 N/A
2015 667,400 668,500 671,900 678,000 N/A
2014 646,900 650,200 655,300 660,800 N/A
RevPAR 2017 $31.73 $ N/A $ N/A $ N/A $ N/A
2016 $31.59 $39.10 $43.04 $32.92 $36.67
2015 $32.84 $39.82 $43.34 $32.98 $37.26
2014 $32.30 $40.11 $43.71 $34.06 $37.57
Destination Network
Average Number of Members (in 000s) 2017 3,817 N/A N/A N/A N/A
2016 3,841 3,857 3,868 3,843 3,852
2015 3,822 3,831 3,835 3,836 3,831
2014 3,727 3,748 3,777 3,808 3,765
Exchange Revenue Per Member 2017 $192.01 $ N/A $ N/A $ N/A $ N/A
2016 $189.78 $164.61 $164.39 $151.19 $167.48
2015 $194.06 $167.81 $163.38 $152.00 $169.29
2014 $200.78 $179.17 $171.77 $157.24 $177.12
Vacation Rental Transactions (in 000s) (a) (b) 2017 538 N/A N/A N/A N/A
2016 500 409 508 350 1,767
2015 459 390 462 319 1,630
2014 429 376 455 293 1,552
Average Net Price Per Vacation Rental(a) (b) 2017 $343.07 $ N/A $ N/A $ N/A $ N/A
2016 $366.08 $492.83 $599.59 $430.14 $475.24
2015 $361.20 $513.14 $642.00 $452.19 $494.92
2014 $410.04 $577.13 $727.40 $492.25 $558.95
Vacation Ownership (a)
Gross Vacation Ownership Interest (VOI) Sales (in
000s) (c) 2017 $439,000 $ N/A $ N/A $ N/A $ N/A
2016 $428,000 $518,000 $564,000 $502,000 $2,012,000
2015 $390,000 $502,000 $565,000 $507,000 $1,965,000
2014 $410,000 $496,000 $513,000 $470,000 $1,889,000
Tours (in 000s) 2017 176 N/A N/A N/A N/A
2016 179 213 230 197 819
2015 168 206 227 200 801
2014 170 208 225 191 794
Volume Per Guest (VPG) 2017 $2,354 $ N/A $ N/A $ N/A $ N/A
2016 $2,244 $2,328 $2,320 $2,399 $2,324
2015 $2,177 $2,353 $2,354 $2,390 $2,326
2014 $2,272 $2,280 $2,158 $2,336 $2,257
Note: Full year amounts may not add across due to rounding.
(a) Includes the impact of acquisitions/dispositions from the acquisition/disposition dates forward. Therefore, the operating statistics are
not presented on a comparable basis.
(b) The destination network operating statistics excluding our U.K.-based camping business sold in Q4 2014 are as follows:
Year Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Vacation Rental Transactions (in 000s) 2014 429 367 431 292 1,518
Average Net Price Per Vacation Rental 2014 $410.02 $578.02 $700.56 $492.64 $548.93
(c) Includes Gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) Just-in-Time. (See Table 9 for a reconciliation of Gross
VOI sales to vacation ownership interest sales).
ADDITIONAL DATA
Year Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Hotel Group
Number of Properties 2017 8,080 N/A N/A N/A N/A
2016 7,830 7,880 7,930 8,040 N/A
2015 7,670 7,700 7,760 7,810 N/A
2014 7,500 7,540 7,590 7,650 N/A
Vacation Ownership
Provision for Loan Losses (in 000s) (*) 2017 $85,000 $ N/A $ N/A $ N/A $ N/A
2016 $63,000 $90,000 $104,000 $86,000 $342,000
2015 $46,000 $60,000 $78,000 $64,000 $248,000
2014 $60,000 $70,000 $70,000 $60,000 $260,000
Note: Full year amounts may not add across due to rounding.
(*) Represents provision for estimated losses on vacation ownership contract receivables originated during the period, which is recorded as a
contra revenue to vacation ownership interest sales on the Consolidated Statements of Income.
Table 3
(2 of 2)
Wyndham Worldwide Corporation
OPERATING STATISTICS
GLOSSARY OF TERMS
-----------------
Hotel Group
Number of Rooms: Represents the number of rooms at hotel group properties at the end of the period which
are either (i) under franchise and/or management agreements, or company owned and (ii) properties under
affiliation agreements for which the Company receives a fee for reservation and/or other services
provided.
--------------------------------------------------------------------------------------------------------
Average Occupancy Rate: Represents the percentage of available rooms occupied during the period.
------------------------------------------------------------------------------------------------
Average Daily Rate (ADR): Represents the average rate charged for renting a lodging room for one day.
-----------------------------------------------------------------------------------------------------
RevPAR: Represents revenue per available room and is calculated by multiplying average occupancy rate by
ADR. Comparable RevPAR represents RevPAR of hotels which are included in both periods.
---------------------------------------------------------------------------------------------------------
Destination Network
Average Number of Members: Represents members in our vacation exchange programs who paid annual membership
dues as of the end of the period or who are within the allowed grace period. For additional fees, such
participants are entitled to exchange intervals for intervals at other properties affiliated with the
Company's vacation exchange business. In addition, certain participants may exchange intervals for other
leisure-related services and products.
-----------------------------------------------------------------------------------------------------------
Exchange Revenue Per Member: Represents total annualized revenues generated from fees associated with
memberships, exchange transactions, member-related rentals and other servicing for the period divided by
the average number of vacation exchange members during the period.
---------------------------------------------------------------------------------------------------------
Vacation Rental Transactions: Represents the number of transactions that are generated in connection with
customers booking their vacation rental stays through one of our vacation brands. One rental transaction
is recorded for each standard one-week rental.
----------------------------------------------------------------------------------------------------------
Average Net Price Per Vacation Rental: Represents the net rental price generated from renting vacation
properties to customers and other related rental servicing fees divided by the number of vacation rental
transactions.
---------------------------------------------------------------------------------------------------------
Vacation Ownership
Gross Vacation Ownership Interest Sales: Represents sales of vacation ownership interest (VOIs), including
WAAM sales, before the net effect of percentage-of-completion accounting and loan loss provisions. We
believe gross VOI sales provide an enhanced understanding of the performance of our vacation ownership
business because it directly measures the sales volume of this business during a given reporting period.
See Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales.
----------------------------------------------------------------------------------------------------------
Tours: Represents the number of tours taken by guests in our efforts to sell VOIs.
----------------------------------------------------------------------------------
Volume per Guest (VPG): Represents Gross VOI sales (excluding tele-sales upgrades, which are non-tour
upgrade sales) divided by the number of tours. The Company has excluded non-tour upgrade sales in the
calculation of VPG because non-tour upgrade sales are generated by a different marketing channel. See
Table 9 for a detail of tele-sales upgrades for 2014-2017.
-------------------------------------------------------------------------------------------------------
General
Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations
between periods (foreign currency translation).
--------------------------------------------------------------------------------------------------------
Currency-Neutral: Represents a comparison eliminating the effects of foreign exchange rate fluctuations
between periods (foreign currency translation) and the impact caused by any foreign exchange related
activities (i.e., hedges, balance sheet remeasurements and/or adjustments).
-------------------------------------------------------------------------------------------------------
Table 4
Wyndham Worldwide Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND RECONCILIATION OF FREE CASH FLOWS
(In millions)
(Unaudited)
Condensed Consolidated Statements of Cash Flows:
Three Months Ended March 31,
----------------------------
2017 2016
---- ----
Net cash provided by operating activities $238 $261
Net cash used in investing activities (79) (90)
Net cash used in financing activities (124) (27)
Effect of changes in exchange rates on cash and cash equivalents 2 3
Net increase in cash and cash equivalents $37 $147
=== ====
Free Cash Flow:
We define free cash flow to be net cash provided by operating activities less property and equipment additions which we also refer to as capital expenditures.
We believe free cash flow to be a useful operating performance measure to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt service and other
obligations, our ability to grow our business through acquisitions, development advances and equity investments, as well as our ability to return cash to shareholders through dividends and share repurchases. A
limitation of using free cash flow versus the GAAP measures of net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities as a means for evaluating
Wyndham Worldwide is that free cash flow does not represent the total cash movement for the period as detailed in the consolidated statement of cash flows.
The following table provides more details on the GAAP financial measure that is most directly comparable to the non-GAAP financial measure and the related reconciliation between these financial measures:
Three Months Ended March 31,
----------------------------
2017 2016
---- ----
Net cash provided by operating activities $238 $261
Less: Property and equipment additions (35) (43)
Free cash flow $203 $218
==== ====
Table 5
Wyndham Worldwide Corporation
REVENUE DETAIL BY REPORTABLE SEGMENT
(In millions)
2017 2016
---- ----
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
--- --- --- --- ---- --- --- --- --- ----
Hotel Group
Royalties and Franchise Fees $79 N/A N/A N/A N/A $74 $94 $105 $94 $367
Marketing, Reservation and Wyndham Rewards Revenues
(a) 83 N/A N/A N/A N/A 83 103 125 92 405
Hotel Management Reimbursable Revenues (b) 66 N/A N/A N/A N/A 67 71 67 65 271
Intersegment Trademark Fees 13 N/A N/A N/A N/A 13 15 16 14 56
Owned Hotel Revenues 23 N/A N/A N/A N/A 27 19 17 17 81
Ancillary Revenues (c) 34 N/A N/A N/A N/A 31 32 34 34 129
Total Hotel Group 298 N/A N/A N/A N/A 295 334 364 316 1,309
Destination Network
Exchange Revenues 183 N/A N/A N/A N/A 182 159 159 145 645
Rental Revenues 184 N/A N/A N/A N/A 183 202 304 151 840
Ancillary Revenues (d) 24 N/A N/A N/A N/A 20 23 23 21 86
Total Destination Network 391 N/A N/A N/A N/A 385 384 486 317 1,571
Vacation Ownership
Vacation Ownership Interest Sales 351 N/A N/A N/A N/A 342 409 441 415 1,606
Consumer Financing 111 N/A N/A N/A N/A 107 108 112 113 440
Property Management Fees and Reimbursable Revenues 175 N/A N/A N/A N/A 164 161 168 168 660
WAAM Fee-for-Service Commissions 2 N/A N/A N/A N/A 17 16 13 - 46
Ancillary Revenues (e) 9 N/A N/A N/A N/A 11 11 10 9 42
Total Vacation Ownership 648 N/A N/A N/A N/A 641 705 744 705 2,794
Total Reportable Segments $1,337 N/A N/A N/A N/A $1,321 $1,423 $1,594 $1,338 $5,674
====== === === === === ====== ====== ====== ====== ======
2015 2014
---- ----
Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year
--- --- --- --- ---- --- --- --- --- ----
Hotel Group
Royalties and Franchise Fees $74 $96 $103 $87 $361 $68 $88 $100 $83 $339
Marketing, Reservation and Wyndham Rewards Revenues
(a) 96 108 112 92 407 76 101 117 91 385
Hotel Management Reimbursable Revenues (b) 61 71 73 68 273 37 39 39 39 154
Intersegment Trademark Fees 12 15 16 15 57 9 11 11 10 41
Owned Hotel Revenues 25 20 16 19 79 24 20 18 20 81
Ancillary Revenues (c) 24 24 37 33 120 23 24 30 24 101
Total Hotel Group 292 334 357 314 1,297 237 283 315 267 1,101
Destination Network
Exchange Revenues 185 161 157 146 649 187 168 162 150 667
Rental Revenues 166 200 296 144 807 176 217 331 144 868
Ancillary Revenues (d) 18 22 23 20 82 16 17 19 17 69
Total Destination Network 369 383 476 310 1,538 379 402 512 311 1,604
Vacation Ownership
Vacation Ownership Interest Sales 336 417 448 403 1,604 303 382 415 385 1,485
Consumer Financing 104 105 108 109 427 105 106 108 108 427
Property Management Fees and Reimbursable Revenues 153 149 159 155 615 143 145 150 142 581
WAAM Fee-for-Service Commissions 12 19 23 28 83 33 30 18 16 98
Ancillary Revenues (e) 12 9 12 11 43 9 10 13 17 47
Total Vacation Ownership 617 699 750 706 2,772 593 673 704 668 2,638
Total Reportable Segments $1,278 $1,416 $1,583 $1,330 $5,607 $1,209 $1,358 $1,531 $1,246 $5,343
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Note: Full year amounts may not add across due to rounding.
(a) Marketing and reservation revenues represent fees the Company receives from franchised and managed hotels that are to be expended for marketing purposes or the
operation of a centralized, brand-specific reservation system. These fees are typically based on a percentage of the gross room revenues of each hotel. Wyndham
Rewards revenues represent fees the Company receives relating to its loyalty program.
(b) Primarily represents payroll costs in the hotel management business that the Company pays on behalf of property owners and for which it is reimbursed by the property
owners. During 2014, reimbursable revenues of $2 million in each of Q1, Q2 and Q3 and $1 million in Q4 were charged to the Company's vacation ownership business and
were eliminated in consolidation.
(c) Primarily includes additional services provided to franchisees and managed properties and fees related to our co-branded credit card program.
(d) Primarily includes fees generated from programs with affiliated resorts and homeowners.
(e) Primarily includes revenues associated with bonus points/credits that are provided as purchase incentives on VOI sales and fees generated from other non-core
operations.
Table 6
Wyndham Worldwide Corporation
BRAND SYSTEM DETAILS
As of and For the Three Months Ended March 31, 2017
---------------------------------------------------
Brand Number of Number of Rooms Average Average Daily Average Revenue
Properties Occupancy Rate Rate (ADR) Per Available
Room (RevPAR)
--- --- -------------
Hotel Group
Super 8 2,839 179,268 52.7% $44.35 $23.39
Days Inn 1,786 142,872 45.2% $65.14 $29.44
Ramada 862 120,647 50.0% $69.58 $34.82
Wyndham Hotels and Resorts 254 55,694 53.1% $101.23 $53.75
Howard Johnson 367 42,318 45.8% $57.08 $26.12
Baymont 437 34,519 46.1% $66.85 $30.79
Travelodge 406 29,725 43.4% $66.41 $28.85
Microtel Inns & Suites by Wyndham 336 24,226 52.1% $65.65 $34.21
Knights Inn 370 22,589 41.5% $48.78 $20.25
TRYP by Wyndham 115 16,223 58.0% $73.59 $42.67
Wingate by Wyndham 153 14,073 57.1% $85.49 $48.79
Hawthorn Suites by Wyndham 108 10,633 61.6% $82.74 $50.98
Dolce 21 4,747 46.8% $154.48 $72.36
Dazzler 12 1,525 63.4% $91.84 $58.25
Esplendor 10 698 66.1% $92.14 $60.90
8,076 699,757 49.5% $64.04 $31.73
Total Hotel Group
Vacation Ownership
Wyndham Vacation Ownership resorts 221 24,859 N/A N/A N/A
--- ------
8,297 724,616
Total Wyndham Worldwide
As of and For the Three Months Ended March 31, 2016
---------------------------------------------------
Brand Number of Number of Rooms Average Average Daily Average Revenue
Properties Occupancy Rate Rate (ADR) Per Available
Room (RevPAR)
--- --- -------------
Hotel Group
Super 8 2,665 170,454 51.5% $45.73 $23.54
Days Inn 1,791 143,212 44.3% $63.81 $28.28
Ramada 837 117,409 49.0% $73.76 $36.12
Wyndham Hotels and Resorts 228 49,952 54.7% $103.78 $56.73
Howard Johnson 381 41,555 44.1% $59.74 $26.33
Baymont 416 33,070 44.9% $66.07 $29.66
Travelodge 406 29,760 45.3% $63.18 $28.63
Microtel Inns & Suites by Wyndham 333 24,045 51.1% $63.64 $32.52
Knights Inn 381 23,258 41.5% $48.76 $20.22
TRYP by Wyndham 120 17,274 54.8% $72.93 $39.97
Wingate by Wyndham 149 13,610 56.3% $86.52 $48.70
Hawthorn Suites by Wyndham 105 10,466 62.3% $82.76 $51.57
Dolce 22 5,080 45.5% $152.13 $69.17
7,834 679,145 48.6% $64.93 $31.59
Total Hotel Group
Vacation Ownership
Wyndham Vacation Ownership resorts 216 24,442 N/A N/A N/A
--- ------
8,050 703,587
Total Wyndham Worldwide
Note: A glossary of terms is included in Table 3 (2 of 2); RevPAR may not recalculate by multiplying average occupancy rate by ADR due to rounding.
Table 7
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION OF ADJUSTED NET INCOME AND EPS
(In millions, except per share data)
Location on Consolidated Three Months Ended March 31,
Statements of Income
--------------------
2017 2016
---- ----
Diluted weighted average shares outstanding 106 114
Diluted EPS $1.33 $0.84
Net income $141 $96
Adjustments:
Restructuring 7 -
Restructuring costs (a)
Asset impairments 5 -
Asset impairments (b)
Operating - 24
Venezuela currency devaluation (c)
Early extinguishment of debt - 11
Early extinguishment of debt (d)
12 35
Total adjustments before tax
Provision for income taxes (33) (4)
Income tax (benefit)/expense (e) (f)
Total adjustments after tax (21) 31
Adjustments - EPS impact $(0.19) $0.27
Adjusted Net income $120 $127
==== ====
Adjusted diluted EPS $1.14 $1.12
===== =====
Note: Amounts may not add due to rounding.
(a) Relates to expenses associated
with restructuring initiatives
at the Company's corporate
operations which focused on
rationalizing its sourcing
function and outsourcing
certain information technology
functions as well at its Hotel
Group segment which primarily
focused on realigning its brand
operations.
(b) Represents a non-cash
impairment charge related to
the write-down of assets
resulting from the decision to
abandon a new product
initiative at the Company's
vacation ownership business.
(c) Represents the impact from the
devaluation of the exchange
rate of Venezuela at the
Company's destination network
business.
(d) Represents costs incurred in
connection with the Company's
early repurchase of its 6.0%
senior unsecured notes.
(e) The amount for 2017 relates to
(i) the tax effect of the
adjustments and (ii) a tax
benefit on foreign currency
losses recognized from an
internal restructuring.
(f) The amount for 2016 relates to
the tax effect of the
adjustments. There was no tax
benefit associated with the $24
million Venezuela currency
devaluation adjustment.
The above tables reconcile certain non-GAAP financial measures. The
presentation of these adjustments is intended to permit the
comparison of particular adjustments as they appear in the income
statement in order to assist investors' understanding of the overall
impact of such adjustments. In addition to GAAP financial measures,
the Company provides adjusted net income and adjusted EPS financial
measures to assist our investors in evaluating our ongoing operating
performance for the current reporting period and, where provided,
over different reporting periods, by adjusting for certain items
which may be recurring or non-recurring and which in our view do
not necessarily reflect ongoing performance. We also internally use
Table 8
(1 of 3)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT
(In millions)
Restructuring Asset Adjusted
EBITDA Costs(b) Impairments (c) EBITDA
------ ------- -------------- ------
Three months ended March 31, 2017
Hotel Group $85 $1 $ - $85
Destination Network 102 - - 102
Vacation Ownership 118 - 5 124
--- --- --- ---
Total Reportable Segments 305 1 5 311
Corporate and Other (a) (39) 6 - (33)
--- --- --- ---
Total Company $266 $7 $5 $278
==== === === ====
Note: Amounts may not add across due to rounding.
Includes the
elimination
of
transactions
between
(a) segments.
Relates to
expenses
associated
with
restructuring
initiatives
at the
Company's
corporate
operations
which
focused on
rationalizing
its sourcing
function and
outsourcing
certain
information
technology
functions as
well at its
Hotel Group
segment
which
primarily
focused on
realigning
its brand
(b) operations.
(c) Represents a
non-cash
impairment
charge
related to
the write-
down of
assets
resulting
from the
decision to
abandon a
new product
initiative.
Table 8
(2 of 3)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT
(In millions)
Venezuela Executive Bargain
Currency Acquisition Legacy Restructuring Contract Departure Purchase Adjusted
EBITDA Devaluation(b) Costs(c) Costs(d) Costs(e) Termination(f) Costs (g) Gain (h) EBITDA
------ ------------- ------- ------- ------- ------------- -------- ------- ------
Three months ended March 31, 2016
Hotel Group $84 $ - $ - $ - $ - $ - $ - $ - $84
Destination Network 81 24 - - - - - - 105
Vacation Ownership 136 - - - - - - - 136
--- --- --- --- --- --- --- --- ---
Total Reportable Segments 301 24 - - - - - - 325
Corporate and Other (a) (34) - - - - - - - (34)
--- --- --- --- --- --- --- --- ---
Total Company $267 $24 $ - $ - $ - $ - $ - $ - $291
==== === === === === === === === === === === === === === ====
Three months ended June 30, 2016
Hotel Group $101 $ - $ - $ - $ - $ - $ - $ - $101
Destination Network 85 - 1 - - - - 85
Vacation Ownership 187 - - - - - - - 187
--- --- --- --- --- --- --- --- ---
Total Reportable Segments 373 - 1 - - - - - 373
Corporate and Other (a) (33) - - - - - - - (33)
--- --- --- --- --- --- --- --- ---
Total Company $340 $ - $1 $ - $ - $ - $ - $ - $340
==== === === === === === === === === === === === === === ====
Three months ended September 30, 2016
Hotel Group $107 $ - $ - $ - $3 $7 $ - $ - $117
Destination Network 138 - - - 4 - - - 142
Vacation Ownership 189 - - - 6 - - - 195
--- --- --- --- --- --- --- --- ---
Total Reportable Segments 434 - - - 13 7 - - 454
Corporate and Other (a) (32) - (1) 1 - - - (31)
--- --- --- --- --- --- --- ---
Total Company $402 $ - $ - $(1) $14 $7 $ - $ - $423
==== === === === === === === === === === === === ====
Three months ended December 31, 2016
Hotel Group $99 $ - $1 $ - $(1) $ - $ - $ - $99
Destination Network 53 - 1 - - - - (2) 52
Vacation Ownership 182 - - 2 - 6 - 191
--- --- --- --- --- --- --- ---
Total Reportable Segments 334 - 2 - 1 - 6 (2) 342
Corporate and Other (a) (12) - - (11) - - - - (24)
--- --- --- --- --- --- --- --- ---
Total Company $322 $ - $2 $(11) $1 $ - $6 $(2) $318
==== === === === ==== === === === === === ====
Twelve months ended December 31, 2016
Hotel Group $391 $ - $1 $ - $2 $7 $ - $ - $401
Destination Network 356 24 1 - 5 - - (2) 385
Vacation Ownership 694 - - - 8 - 6 - 708
--- --- --- --- --- --- --- --- ---
Total Reportable Segments 1,441 24 2 - 15 7 6 (2) 1,494
Corporate and Other (a) (110) - - (11) - - - - (121)
---- --- --- --- --- --- --- --- ----
Total Company $1,331 $24 $2 $(11) $15 $7 $6 $(2) $1,373
====== === === ==== === === === === ======
Note: Amounts may not add across due to rounding. The sum of the quarters may not add down due to rounding.
(a) Includes the elimination of transactions between segments.
(b) Represents the impact from the devaluation of the exchange rate of Venezuela.
(c) Represents costs related to acquisitions.
(d) Relates to a benefit from adjustments to certain contingent liabilities from the Company's separation
from Cendant.
(e) Relates to costs incurred due to enhancing organizational efficiency and rationalizing existing
facilities across the Company.
(f) Relates to additional costs associated with the termination of a management contract.
(g) Represents costs associated with the departure of the chief executive officer at the Company's vacation
ownership business.
(h) Represents a gain from a bargain purchase on an acquisition of a vacation rentals business.
Table 8
(3 of 3)
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT
SHARED-BASED COMPENSATION EXPENSE
(In millions)
The following tables provide detail regarding share-based compensation expense which is included within adjusted EBITDA:
2017
----
Q1 Q2 Q3 Q4 Full Year
--- --- --- --- ---------
Adjusted EBITDA $278 N/A N/A N/A N/A
Share-based compensation expense (*) 14 N/A N/A N/A N/A
Adjusted EBITDA excluding share-based compensation expense $292 N/A N/A N/A N/A
==== === === === ===
2016
----
Q1 Q2 Q3 Q4 Full Year
--- --- --- --- ---------
Adjusted EBITDA $291 $340 $423 $318 $1,373
Share-based compensation expense (*) 13 20 14 13 61
Adjusted EBITDA excluding share-based compensation expense $304 $360 $437 $331 $1,434
==== ==== ==== ==== ======
Note: Full year amounts may not add across due to rounding.
(*) Excludes share-based compensation expenses for which there was no impact on adjusted EBITDA. Such costs amounted to $1 million during Q1
2017. During 2016, such costs amounted to $1 million during Q1, Q2 and Q3, and $4 million during Q4 and $7 million for the full year. The
Company believes providing adjusted EBITDA with the additional exclusion of share-based compensation expense assists our investors and
management by providing an additional financial measure to evaluate ongoing operations by excluding the variations among companies in
timing, amount and reporting of share-based compensation expense, which may differ significantly among companies.
Table 9
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION OF GROSS VOI SALES
(In millions)
GROSS VOI SALES
---------------
We believe gross vacation ownership sales provide an enhanced understanding of the performance of our vacation ownership
business because it directly measures the sales volume of this business during a given reporting period.
The following table provides a reconciliation of Gross VOI sales (see Table 3) to vacation ownership interest sales (see Table 5):
Year
----
2017 Q1 Q2 Q3 Q4 Full Year
---- --- --- --- --- ---------
Gross VOI sales $439 $ N/A $ N/A $ N/A $ N/A
Less: Sales under WAAM Fee-for-Service (3) N/A N/A N/A N/A
--- --- --- --- ---
Gross VOI sales, net of WAAM Fee-for-Service sales 436 N/A N/A N/A N/A
Less: Loan loss provision (85) N/A N/A N/A N/A
---
Vacation ownership interest sales $351 $ N/A $ N/A $ N/A $ N/A
==== === === === === === === === ===
2016
----
Gross VOI sales $428 $518 $564 $502 $2,012
Less: Sales under WAAM Fee-for-Service (23) (20) (20) (1) (64)
--- --- --- --- ---
Gross VOI sales, net of WAAM Fee-for-Service sales 405 498 544 501 1,948
Less: Loan loss provision (63) (90) (104) (86) (342)
Vacation ownership interest sales $342 $409 $441 $415 $1,606
==== ==== ==== ==== ======
2015
----
Gross VOI sales $390 $502 $565 $507 $1,965
Less: Sales under WAAM Fee-for-Service (21) (26) (37) (42) (126)
--- --- --- --- ----
Gross VOI sales, net of WAAM Fee-for-Service sales 369 477 528 464 1,838
Less: Loan loss provision (46) (60) (78) (64) (248)
Less: Impact of percentage-of-completion accounting 13 - (2) 2 13
Vacation ownership interest sales $336 $417 $448 $403 $1,604
==== ==== ==== ==== ======
2014
----
Gross VOI sales $410 $496 $513 $470 $1,889
Less: Sales under WAAM Fee-for-Service (44) (40) (27) (21) (132)
--- --- --- --- ----
Gross VOI sales, net of WAAM Fee-for-Service sales 366 456 486 449 1,757
Less: Loan loss provision (60) (70) (70) (60) (260)
Less: Impact of percentage-of-completion accounting (3) (4) (1) (4) (12)
Vacation ownership interest sales $303 $382 $415 $385 $1,485
==== ==== ==== ==== ======
_____________
Note: Amounts may not add due to rounding.
The following includes primarily tele-sales upgrades and other non-tour revenues, which are excluded from Gross VOI sales in the
Company's VPG calculation (see Table 3):
Q1 Q2 Q3 Q4 Full Year
--- --- --- --- ---------
2017 $25 $ N/A $ N/A $ N/A $ N/A
2016 $25 $22 $31 $30 $108
2015 $24 $17 $32 $27 $100
2014 $25 $21 $27 $24 $97
Table 10
Wyndham Worldwide Corporation
2017 OUTLOOK - NON-GAAP
(In millions, except per share data)
Outlook (a) Outlook (a)
As Adjusted As Adjusted
(Non-GAAP) (Non-GAAP)
--------- ---------
Low High
--- ----
Net revenues $5,800 $5,950
Adjusted EBITDA $1,410 $1,440
Depreciation and amortization (268) (263)
Interest expense, net (146) (142)
---- ----
Adjusted income before taxes 995 1,028
Income taxes (364) (376)
---- ----
Adjusted net income $631 $652
==== ====
Adjusted diluted earnings per share $5.98 $6.18
Diluted shares 105.5 105.5
In determining adjusted EBIDTA, adjusted Net Income and adjusted EPS, the Company excludes certain items which are otherwise included in
determining the comparable GAAP financial measures. A description of the adjustments which have been applicable in determining adjusted EBITDA,
adjusted Net Income and adjusted EPS is included in Tables 7 and 8. The Company is providing outlook on a non-GAAP basis because the Company
is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of potential adjustments for the forward-looking
period, which can be dependent on future events that may not be reliably predicted, such as acquisitions, legacy expenses, restructuring events,
asset impairments, contract terminations, currency devaluations, or early extinguishment of debt instruments. Based on past reported results,
where one or more of these items have been applicable, such excluded special items could be material, individually or in the aggregate, to the
reported results. See Tables 7 and 8 for historical adjustments.
(a) Outlook
represents
Company's
approximate
projection of
performance
for the
outlook
period.
Projections
may not total
because the
Company does
not expect the
actual results
of all items
to be at the
precise amount
simultaneously.
Table 11
Wyndham Worldwide Corporation
NON-GAAP RECONCILIATION - CONSTANT CURRENCY, CURRENCY NEUTRAL AND ACQUISITIONS
(In millions, except per share data)
The Company reports certain current year period financial measures on a constant currency and currency-neutral basis and excluding the impact of acquisitions. The Company believes providing certain financial measures on a constant currency and currency-neutral basis as well as excluding the impact of
acquisitions assists management and investors in better understanding underlying results and trends by excluding the impact of period over period changes in foreign exchange rates and changes resulting from acquisitions.
Constant currency results assume foreign results are translated from foreign currencies to the U.S. dollar at exchange rates consistent with those in the comparable period.
Currency Neutral results (i) assume foreign results are translated from foreign currencies to the U.S. dollar at exchange rates consistent with those in the comparable period and (ii) eliminating foreign exchange related activities such as foreign exchange hedges, balance sheet remeasurements, currency
devaluations and/or other adjustments.
Acquisition results are defined as the incremental period over period changes in the Company's results directly attributable to acquisitions.
Revenues in Constant Currency and Excluding Acquisitions: Three Months Ended March 31,
----------------------------
2017 2016 % Change
---- ---- --------
Destination Network revenue as reported $391 $385 2%
Adjustments:
9 - *
Foreign currency - constant currency
(13) - *
Incremental revenues from acquisitions
Total Destination Network revenues in constant currency and excluding
acquisitions $387 $385 1%
Rental revenue as reported $184 $183 1%
Adjustments:
9 - *
Foreign currency - constant currency
(9) - *
Incremental revenues from acquisitions
Total Rental revenues in constant currency and excluding acquisitions $184 $183 1%
Currency-neutral Adjusted EBITDA: Three months ended March 31,
----------------------------
2017 2016 % Change
---- ---- --------
Hotel Group EBITDA (a) $85 $84 1%
Adjustments:
1 - *
Foreign currency - currency-neutral
Hotel Group Currency-neutral EBITDA $86 $84 2%
Destination Network Adjusted EBITDA (a) $102 $105 -3%
Adjustments:
Incremental EBITDA from acquisitions (2) *
-
---
Destination Network Adjusted EBITDA $100 105 -5%
$
===
excluding acquisitions
----------------------
* Not meaningful.
(a) See Table 8 for a reconciliation of EBITDA to Adjusted EBITDA and Table 2 for a reconciliation of Net Income to EBITDA.
Table 12
Wyndham Worldwide Corporation
SCHEDULE OF DEBT
(In millions)
March 31, December 31, March 31,
2017 2016 2016
---- ---- ----
Securitized vacation ownership debt: (a)
Term notes $1,902 $1,857 $2,005
Bank conduit facility (b) 236 284 121
--- ---
Total securitized vacation ownership debt (c) 2,138 2,141 2,126
Less: Current portion of securitized vacation ownership debt 191 195 207
Long-term securitized vacation ownership debt $1,947 $1,946 $1,919
====== ====== ======
Debt:
Revolving credit facility (due July 2020) (d) $8 $14 $10
Commercial paper (e) 221 427 343
Term loan (due March 2021) 324 323 323
$300 million 2.95% senior unsecured notes (due March 2017) (f) - 300 299
$14 million 5.75% senior unsecured notes (due February 2018) (g) 14 14 14
$450 million 2.50% senior unsecured notes (due March 2018) (g) 449 449 448
$40 million 7.375% senior unsecured notes (due March 2020) 40 40 40
$250 million 5.625% senior unsecured notes (due March 2021) 248 248 247
$650 million 4.25% senior unsecured notes (due March 2022) 648 648 648
$400 million 3.90% senior unsecured notes (due March 2023) 406 407 408
$300 million 4.15% senior unsecured notes (due April 2024) 297 - -
$350 million 5.10% senior unsecured notes (due October 2025) 339 338 337
$400 million 4.50% senior unsecured notes (due April 2027) 396 - -
Capital leases 141 143 158
Other 44 20 31
--- --- ---
Total long-term debt 3,575 3,371 3,306
Less: Current portion of long-term debt 40 34 45
Long-term debt $3,535 $3,337 $3,261
====== ====== ======
(a) The Company's
vacation
ownership
contract
receivables
are
securitized
through
bankruptcy-
remote
special
purpose
entities
("SPEs")
that are
consolidated
within our
financial
statements.
These
bankruptcy-
remote SPEs
are legally
separate
from the
Company. The
receivables
held by the
bankruptcy-
remote SPEs
are not
available to
the
Company's
creditors
and legally
are not the
Company's
assets.
Additionally,
the non-
recourse
debt that is
securitized
through the
SPEs is
legally not
a liability
of the
Company and
thus, the
creditors of
these SPEs
have no
recourse to
the Company
for
principal
and
interest.
(b) Represents a
non-
recourse
vacation
ownership
bank conduit
facility
with a term
through
August 2018
and
borrowing
capacity of
$650
million. As
of March 31,
2017, this
facility had
a remaining
borrowing
capacity of
$414
million.
(c) This debt is
collateralized
by $2,582
million,
$2,601
million and
$2,548
million, of
underlying
vacation
ownership
contract
receivables
and related
assets as of
March 31,
2017,
December 31,
2016, and
March 31,
2016,
respectively.
(d) Represents a
$1.5 billion
revolving
credit
facility
that expires
in July
2020. As of
March 31,
2017, the
Company had
$1 million
of
outstanding
letters of
credit.
After
considering
outstanding
commercial
paper
borrowings
of $221
million, the
remaining
borrowing
capacity was
$1.3 billion
as of March
31, 2017.
(e) Represents
commercial
paper
programs of
$1.25
billion with
a remaining
borrowing
capacity of
$1.0 billion
as of March
31, 2017.
(f) Classified as
long-term
as of
December 31,
2016 and
March 31,
2016 as the
Company had
the intent
to refinance
such debt on
a long-term
basis and
the ability
to do so
with its
revolving
credit
facility.
(g) Classified as
long-term
as of March
31, 2017 as
the Company
has the
intent to
refinance
such debt on
a long-term
basis and
the ability
to do so
with its
revolving
credit
facility.
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SOURCE Wyndham Worldwide Corporation
