Wyndham Worldwide Reports Third Quarter 2016 Results

PARSIPPANY, N.J., Oct. 26, 2016 (hospitalitybusinessnews.com) — Wyndham Worldwide Corporation today announced results for the three months ended September 30, 2016.

Third quarter revenues were $1.6 billion, up 1% compared with the prior year period. In constant currency and excluding acquisitions, revenues also increased 1%.  Full reconciliations of GAAP results to non-GAAP measures appear in the tables to this press release.

Net income for the third quarter of 2016 was $196 million, or $1.78 per diluted share, compared with $190 million, or $1.61 per diluted share, for the third quarter of 2015. Adjusted net income for the third quarter of 2016 was $207 million, or $1.89 per diluted share, compared with $210 million, or $1.78 per diluted share, for the third quarter of 2015. EPS benefited from the Company’s share repurchase program.

Third quarter EBITDA was $402 million, compared with $382 million in the prior year period, an increase of 5%. Adjusted EBITDA, which excludes charges in both 2016 and 2015 as detailed in Table 8 of this press release, was $423 million, compared with $412 million in the prior year period, an increase of 3%. On a currency-neutral basis and excluding acquisitions, adjusted EBITDA increased 5%.

“Wyndham continues to deliver solid earnings and strong cash flow,” said Stephen P. Holmes, chairman and CEO.  “These results reflect successful execution of our strategy, a resilient portfolio of complementary, fee-based businesses, and disciplined capital allocation.”

For the nine months ended September 30, 2016, net cash provided by operating activities was $786 million, compared with $817 million in the prior year period. The decrease reflects unfavorable currency movements of $34 million, including a $24 million devaluation of the Venezuelan bolivar in the first quarter of 2016.

Free cash flow was $650 million for the nine months ended September 30, 2016, compared with $660 million for the same period in 2015, reflecting the currency movements referenced above partially offset by lower capital expenditures. The Company defines free cash flow as net cash provided by operating activities less capital expenditures.

THIRD QUARTER 2016 BUSINESS UNIT RESULTS

Hotel Group
Revenues were $364 million in the third quarter of 2016, compared with $357 million in the third quarter of 2015. Revenues reflected higher royalties, growth in the Company’s Wyndham Rewards credit card program and fees associated with the Company’s global franchise conference, partially offset by lower reimbursable property management revenues.

EBITDA was $107 million in the third quarter compared with $83 million in the prior year quarter. Adjusted EBITDA, which excludes charges and benefits during both 2016 and 2015 as detailed in Table 8 of this press release, grew 8% to $117 million. This reflects higher royalties, growth in the Company’s Wyndham Rewards credit card program and expense management.

Third quarter domestic RevPAR increased 1.9%. In constant currency, total system-wide same store RevPAR increased 1.4% compared with the third quarter of 2015, which reflects ongoing pressure in domestic and Canadian oil markets and decelerating industry RevPAR trends.

As of September 30, 2016, the Company’s hotel system consisted of approximately 7,930 properties and approximately 689,800 rooms, a 2.7% net room increase compared with the third quarter of 2015. The development pipeline included nearly 1,100 hotels and approximately 133,800 rooms, of which 60% were international and 66% were new construction.

Destination Network
Revenues were $486 million in the third quarter of 2016, compared with $476 million in the third quarter of 2015, an increase of 2%. In constant currency and excluding acquisitions, revenues increased 5%.

Exchange revenues were $159 million compared with $157 million in the prior year quarter. In constant currency, exchange revenues grew 2% as exchange revenue per member increased 1.4% and the average number of members increased 0.9%.

Vacation rental revenues were $304 million compared with $296 million in the prior year quarter. In constant currency and excluding the impact of acquisitions, vacation rental revenues were up 6%, reflecting an 8.0% increase in transaction volume, partially offset by a 1.7% decrease in average net price per vacation rental. Transaction growth benefited from our dynamic pricing initiative as well as capacity increases. Faster growth in our more moderately priced products decreased the average net price per rental.

EBITDA was $138 million during the third quarter compared with $134 million in the prior year quarter. Adjusted EBITDA, which excludes restructuring costs, was $142 million for the third quarter of 2016, a 4% increase compared with the prior year quarter. On a currency-neutral basis and excluding the impact of acquisitions, adjusted EBITDA increased 8% compared with the prior year period.

Vacation Ownership
Revenues were $744 million in the third quarter of 2016, compared with $750 million in the third quarter of 2015.

Net VOI sales in the third quarter of 2016 declined 2% due to a higher provision for loan losses and flat Gross VOI sales. Results reflect tour flow growth of 1.3%, offset by a volume per guest (VPG) decline of 1.4%, reflecting proportionally higher sales to new owners. The number of new owners added increased 10% from the third quarter of 2015.

EBITDA was $189 million during the third quarter compared with $200 million in the prior year quarter. Adjusted EBITDA, which excludes restructuring costs, was $195 million for the third quarter of 2016, a decline of 3% compared with the prior year quarter. This reflects a higher loan loss provision and higher marketing costs, partially offset by higher property management fees, increased consumer financing income and expense management.

OTHER ITEMS

  • The Company repurchased 2.1 million shares of common stock for $150 million during the third quarter of 2016. From October 1 through October 25, 2016, the Company repurchased an additional 0.7 million shares for $50 million.
  • Net interest expense in the third quarter of 2016 was $32 million, compared with $31 million in the third quarter of 2015.
  • Depreciation and amortization in the third quarter of 2016 was $63 million, compared with $59 million in the third quarter of 2015, reflecting new projects that were placed into service.

Balance Sheet Information as of September 30, 2016:

  • Cash and cash equivalents of $332 million, compared with $171 million at December 31, 2015
  • Vacation ownership contract receivables, net, of $2.8 billion, compared with $2.7 billion at December 31, 2015
  • Vacation ownership and other inventory of $1.3 billion, unchanged from December 31, 2015
  • Securitized vacation ownership debt of $2.1 billion, unchanged from December 31, 2015
  • Long-term debt of $3.4 billion, compared with $3.1 billion at December 31, 2015. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.1 billion as of September 30, 2016, compared with $1.4 billion at December 31, 2015.

A schedule of debt is included in Table 12 of this press release.

Wyndham Worldwide Corporation

Earnings Release Schedules

Quarter Three – September 30, 2016

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 2016 Outlook

10

Non-GAAP Reconciliation – Constant Currency and Currency Neutral

11

Schedule of Debt

12

Table 1

Wyndham Worldwide Corporation

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)

 Three Months Ended 

 Nine Months Ended 

 September 30, 

 September 30, 

2016

2015

2016

2015

Net revenues

Service and membership fees

$

735

$

734

$

2,001

$

1,957

Vacation ownership interest sales

441

448

1,191

1,201

Franchise fees

203

192

513

517

Consumer financing

112

108

327

318

Other

82

82

247

231

Net revenues

1,573

1,564

4,279

4,224

Expenses

Operating

679

691

1,915

1,865

Cost of vacation ownership interests 

47

43

115

123

Consumer financing interest

19

18

55

55

Marketing and reservation

242

218

645

624

General and administrative

173

200

545

562

Asset impairments

7

7

Restructuring

14

8

14

8

Depreciation and amortization

63

59

187

173

Total expenses

1,237

1,244

3,476

3,417

Operating income

336

320

803

807

Other (income)/expense, net

(3)

(3)

(19)

(11)

Interest expense

34

33

102

89

Early extinguishment of debt

11

Interest income

(2)

(2)

(6)

(7)

Income before income taxes

307

292

715

736

Provision for income taxes

110

102

267

265

Net income

197

190

448

471

Net income attributable to noncontrolling interest

(1)

(1)

Net income attributable to Wyndham shareholders

$

196

$

190

$

447

$

471

Earnings per share

Basic

$

1.79

$

1.62

$

4.03

$

3.96

Diluted

1.78

1.61

4.01

3.93

Weighted average shares outstanding

Basic

109

117

111

119

Diluted

110

118

112

120

Note: For a description of adjustments to Net Income, see Table 7.

Table 2

(1 of 2)

Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)

In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and “EBITDA”, which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing 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 EBITDA to Net income attributable to Wyndham shareholders for the three months ended September 30, 2016 and 2015:

Three Months Ended September 30, 

2016

2015

 Net Revenues 

 EBITDA 

 Net Revenues 

 EBITDA 

Hotel Group

$

364

$

107

$

357

$

83

Destination Network

486

138

476

134

Vacation Ownership

744

189

750

200

     Total Reportable Segments

1,594

434

1,583

417

Corporate and Other (a)

(21)

(32)

(19)

(35)

     Total Company

$

1,573

$

402

$

1,564

$

382

Reconciliation of EBITDA to Net income attributable to Wyndham shareholders

 Three Months Ended September 30,  

2016

2015

EBITDA

$

402

$

382

Depreciation and amortization

63

59

Interest expense

34

33

Interest income

(2)

(2)

Income before income taxes

307

292

Provision for income taxes

110

102

Net income

197

190

Net income attributable to noncontrolling interest

(1)

Net income attributable to Wyndham shareholders

$

196

$

190

(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 September 30, 2016 and 2015 (for a description of adjustments and reconciliation by segment, see Table 8):

Three Months Ended September 30, 

2016

2015

Adjusted 

Adjusted 

 Net Revenues 

 EBITDA 

 Net Revenues 

 EBITDA 

Hotel Group

$

364

$

117

$

357

$

108

Destination Network

486

142

476

137

Vacation Ownership

744

195

750

201

     Total Reportable Segments

1,594

454

1,583

446

Corporate and Other

(21)

(31)

(19)

(34)

     Total Company

$

1,573

$

423

$

1,564

$

412

Table 2

(2 of 2)

Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)

The following tables summarize net revenues and EBITDA for the Company’s reportable segments, as well as reconcile EBITDA to Net income
attributable to Wyndham shareholders for the nine months ended September 30, 2016 and 2015:

Nine Months Ended September 30, 

2016

2015

 Net Revenues 

 EBITDA 

 Net Revenues 

 EBITDA 

Hotel Group

$

993

$

291

$

983

$

255

Destination Network

1,255

303

1,228

323

Vacation Ownership

2,089

512

2,067

513

     Total Reportable Segments

4,337

1,106

4,278

1,091

Corporate and Other (a)

(58)

(97)

(54)

(100)

     Total Company

$

4,279

$

1,009

$

4,224

$

991

Reconciliation of EBITDA to Net income attributable to Wyndham shareholders

Nine Months Ended September 30, 

2016

2015

EBITDA

$

1,009

$

991

Depreciation and amortization

187

173

Interest expense

102

89

Early extinguishment of debt

11

Interest income

(6)

(7)

Income before income taxes

715

736

Provision for income taxes

267

265

Net income

448

471

Net income attributable to noncontrolling interest

(1)

Net income attributable to Wyndham shareholders

$

447

$

471

(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 nine months ended September 30,
2016 and 2015 (for a description of adjustments and reconciliation by segment, see Table 8):

Nine Months Ended September 30, 

2016

2015

Adjusted 

Adjusted 

 Net Revenues 

 EBITDA 

 Net Revenues 

 EBITDA 

Hotel Group

$

993

$

301

$

983

$

284

Destination Network

1,255

333

1,228

326

Vacation Ownership

2,089

518

2,067

514

     Total Reportable Segments

4,337

1,152

4,278

1,124

Corporate and Other

(58)

(97)

(54)

(101)

     Total Company

$

4,279

$

1,055

$

4,224

$

1,023

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 

2016

679,100

683,300

689,800

 N/A 

 N/A 

2015

667,400

668,500

671,900

678,000

 N/A 

2014

646,900

650,200

655,300

660,800

 N/A 

2013

631,800

635,100

638,300

645,400

 N/A 

RevPAR

2016

$

31.59

$

39.10

$

43.04

 N/A 

 N/A 

2015

$

32.84

$

39.82

$

43.34

$

32.98

$

37.26

2014

$

32.30

$

40.11

$

43.71

$

34.06

$

37.57

2013

$

31.05

$

38.00

$

41.78

$

33.07

$

36.00

Destination Network

Average Number of Members (in 000s)

2016

3,841

3,857

3,868

 N/A 

 N/A 

2015

3,822

3,831

3,835

3,836

3,831

2014

3,727

3,748

3,777

3,808

3,765

2013

3,668

3,686

3,711

3,728

3,698

Exchange Revenue Per Member

2016

$

189.78

$

164.61

$

164.39

 N/A 

 N/A 

2015

$

194.06

$

167.81

$

163.38

$

152.00

$

169.29

2014

$

200.78

$

179.17

$

171.77

$

157.24

$

177.12

2013

$

210.96

$

182.42

$

169.95

$

161.21

$

181.02

Vacation Rental Transactions (in 000s) (a) (b)

2016

500

409

508

 N/A 

 N/A 

2015

459

390

462

319

1,630

2014

429

376

455

293

1,552

2013

423

355

433

273

1,483

Average Net Price Per Vacation Rental (a) (b)

2016

$

366.08

$

492.83

$

599.59

 N/A 

 N/A 

2015

$

361.20

$

513.14

$

642.00

$

452.19

$

494.92

2014

$

410.04

$

577.13

$

727.40

$

492.25

$

558.95

2013

$

392.64

$

540.38

$

677.81

$

506.62

$

532.11

Vacation Ownership (a)

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

2016

$

428,000

$

518,000

$

564,000

 N/A 

 N/A 

2015

$

390,000

$

502,000

$

565,000

$

507,000

$

1,965,000

2014

$

410,000

$

496,000

$

513,000

$

470,000

$

1,889,000

2013

$

384,000

$

481,000

$

536,000

$

488,000

$

1,889,000

Tours (in 000s)

2016

179

213

230

 N/A 

 N/A 

2015

168

206

227

200

801

2014

170

208

225

191

794

2013

163

206

225

195

789

Volume Per Guest (VPG)

2016

$

2,244

$

2,328

$

2,320

 N/A 

 N/A 

2015

$

2,177

$

2,353

$

2,354

$

2,390

$

2,326

2014

$

2,272

$

2,280

$

2,158

$

2,336

$

2,257

2013

$

2,211

$

2,256

$

2,278

$

2,370

$

2,281

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

2016

7,830

7,880

7,930

 N/A 

 N/A 

2015

7,670

7,700

7,760

7,810

 N/A 

2014

7,500

7,540

7,590

7,650

 N/A 

2013

7,380

7,410

7,440

7,490

 N/A 

Vacation Ownership

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

2016

$

63,000

$

90,000

$

104,000

 N/A 

 N/A 

2015

$

46,000

$

60,000

$

78,000

$

64,000

$

248,000

2014

$

60,000

$

70,000

$

70,000

$

60,000

$

260,000

2013

$

84,000

$

90,000

$

102,000

$

73,000

$

349,000

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 2013-2016.

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:

Nine Months Ended September 30, 

2016

2015

Net cash provided by operating activities

$

786

$

817

Net cash used in investing activities

(172)

(244)

Net cash used in financing activities

(442)

(477)

Effect of changes in exchange rates on cash and cash equivalents

(11)

(20)

Net increase in cash and cash equivalents

$

161

$

76

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:

Nine Months Ended September 30, 

2016

2015

Net cash provided by operating activities

$

786

$

817

Less: Property and equipment additions

(136)

(157)

Free cash flow

$

650

$

660

Table 5

Wyndham Worldwide Corporation

REVENUE DETAIL BY REPORTABLE SEGMENT

(In millions)

2016

2015

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

Hotel Group

Royalties and Franchise Fees

$

74

$

94

$

105

 N/A 

 N/A 

$

74

$

96

$

103

$

87

$

361

Marketing, Reservation and Wyndham Rewards Revenues (a)

83

103

125

 N/A 

 N/A 

96

108

112

92

407

Hotel Management Reimbursable Revenues (b)

67

71

67

 N/A 

 N/A 

61

71

73

68

273

Intersegment Trademark Fees

13

15

16

 N/A 

 N/A 

12

15

16

15

57

Owned Hotel Revenues

27

19

17

 N/A 

 N/A 

25

20

16

19

79

Ancillary Revenues (c)

31

32

34

 N/A 

 N/A 

24

24

37

33

120

Total Hotel Group

295

334

364

 N/A 

 N/A 

292

334

357

314

1,297

Destination Network

Exchange Revenues

182

159

159

 N/A 

 N/A 

185

161

157

146

649

Rental Revenues

183

202

304

 N/A 

 N/A 

166

200

296

144

807

Ancillary Revenues (d)

20

23

23

 N/A 

 N/A 

18

22

23

20

82

Total Destination Network

385

384

486

 N/A 

 N/A 

369

383

476

310

1,538

Vacation Ownership

Vacation Ownership Interest Sales

342

409

441

 N/A 

 N/A 

336

417

448

403

1,604

Consumer Financing

107

108

112

 N/A 

 N/A 

104

105

108

109

427

Property Management Fees and Reimbursable Revenues

164

161

168

 N/A 

 N/A 

153

149

159

155

615

WAAM Fee-for-Service Commissions

17

16

13

 N/A 

 N/A 

12

19

23

28

83

Ancillary Revenues (e)

11

11

10

 N/A 

 N/A 

12

9

12

11

43

Total Vacation Ownership

641

705

744

 N/A 

 N/A 

617

699

750

706

2,772

Total Reportable Segments

$

1,321

$

1,423

$

1,594

 N/A 

 N/A 

$

1,278

$

1,416

$

1,583

$

1,330

$

5,607

2014

2013

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

 Q1 

 Q2 

 Q3 

 Q4 

 Year 

Hotel Group

Royalties and Franchise Fees

$

68

$

88

$

100

$

83

$

339

$

64

$

79

$

91

$

75

$

309

Marketing, Reservation and Wyndham Rewards Revenues (a)

76

101

117

91

385

73

92

118

83

365

Hotel Management Reimbursable Revenues (b)

37

39

39

39

154

25

38

37

35

135

Intersegment Trademark Fees

9

11

11

10

41

8

10

11

10

39

Owned Hotel Revenues

24

20

18

20

81

26

20

18

19

84

Ancillary Revenues (c)

23

24

30

24

101

26

23

22

23

95

Total Hotel Group

237

283

315

267

1,101

222

262

297

245

1,027

Destination Network

Exchange Revenues

187

168

162

150

667

193

168

158

150

669

Rental Revenues

176

217

331

144

868

166

192

293

138

789

Ancillary Revenues (d)

16

17

19

17

69

15

16

19

17

68

Total Destination Network

379

402

512

311

1,604

374

376

470

305

1,526

Vacation Ownership

Vacation Ownership Interest Sales

303

382

415

385

1,485

263

347

384

384

1,379

Consumer Financing

105

106

108

108

427

105

106

107

108

426

Property Management Fees

143

145

150

142

581

146

141

143

137

567

WAAM Fee-for-Service Commissions

33

30

18

16

98

24

30

33

20

107

Ancillary Revenues (e)

9

10

13

17

47

11

6

10

9

36

Total Vacation Ownership

593

673

704

668

2,638

549

630

677

658

2,515

Total Reportable Segments

$

1,209

$

1,358

$

1,531

$

1,246

$

5,343

$

1,145

$

1,268

$

1,444

$

1,208

$

5,068

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 which were charged to the Company’s vacation ownership business and were eliminated in consolidation. During 2013, such amounts include reimbursable revenues
of $1 million, $3 million and $2 million, in Q2, Q3 and Q4 respectively, which 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

(1 of 2)

Wyndham Worldwide Corporation

BRAND SYSTEM DETAILS

As of and For the Three Months Ended September 30, 2016

Average Revenue 

Number of 

Average 

Average Daily 

Per Available

Brand

Properties

Number of Rooms

Occupancy Rate

Rate (ADR)

Room (RevPAR)

Hotel Group

Super 8 

2,747

175,094

63.7%

$52.27

$33.28

Days Inn 

1,784

142,789

57.5%

$73.31

$42.15

Ramada 

850

120,092

58.0%

$78.30

$45.39

Wyndham Hotels and Resorts

235

51,898

57.4%

$109.11

$62.66

Howard Johnson 

376

43,226

55.5%

$67.43

$37.41

Baymont

425

33,732

58.9%

$75.52

$44.49

Travelodge 

406

30,012

59.0%

$79.62

$46.99

Microtel Inns & Suites by Wyndham

337

24,325

63.7%

$73.28

$46.70

Knights Inn 

375

22,841

49.3%

$54.80

$27.00

TRYP by Wyndham

114

16,322

73.7%

$79.77

$58.75

Wingate by Wyndham

149

13,568

68.4%

$94.68

$64.75

Hawthorn Suites by Wyndham

109

10,743

71.1%

$82.32

$58.49

Dolce

22

5,110

58.8%

$170.72

$100.43

Total Hotel Group

7,929

689,752

59.9%

$71.80

$43.04

Vacation Ownership

Wyndham Vacation Ownership resorts

218

24,582

N/A

N/A

N/A

Total Wyndham Worldwide

8,147

714,334

As of and For the Three Months Ended September 30, 2015

Average Revenue

Number of 

Average 

Average Daily 

Per Available 

Brand

Properties

Number of Rooms

Occupancy Rate

Rate (ADR)

Room (RevPAR)

Hotel Group

Super 8 

2,600

166,656

65.1%

$52.68

$34.29

Days Inn 

1,785

142,613

58.1%

$71.39

$41.48

Ramada 

838

117,044

59.0%

$76.94

$45.42

Wyndham Hotels and Resorts

210

45,537

65.5%

$108.30

$70.92

Howard Johnson 

403

43,803

59.0%

$62.54

$36.88

Baymont

396

31,480

60.0%

$72.04

$43.20

Travelodge 

414

30,692

59.8%

$74.56

$44.56

Microtel Inns & Suites by Wyndham

333

23,960

64.2%

$72.00

$46.20

Knights Inn 

383

23,464

49.2%

$52.00

$25.58

TRYP by Wyndham

122

17,641

70.3%

$84.05

$59.05

Wingate by Wyndham

148

13,450

70.4%

$91.42

$64.39

Hawthorn Suites by Wyndham

101

10,053

70.1%

$81.67

$57.28

Dolce

24

5,530

58.8%

$160.45

$94.40

Total Hotel Group

7,757

671,923

61.4%

$70.63

$43.34

Vacation Ownership

Wyndham Vacation Ownership resorts

211

24,095

N/A

N/A

N/A

Total Wyndham Worldwide

7,968

696,018

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 6

(2 of 2)

Wyndham Worldwide Corporation

BRAND SYSTEM DETAILS

As of and For the Nine Months Ended September 30, 2016

Average Revenue

Number of 

Average 

Average Daily 

 Per Available 

Brand

Properties

Number of Rooms

Occupancy Rate

Rate (ADR)

Room (RevPAR)

Hotel Group

Super 8 

2,747

175,094

58.6%

$49.38

$28.93

Days Inn 

1,784

142,789

51.8%

$69.10

$35.80

Ramada 

850

120,092

54.5%

$75.09

$40.94

Wyndham Hotels and Resorts

235

51,898

58.1%

$106.62

$61.99

Howard Johnson 

376

43,226

49.8%

$62.94

$31.32

Baymont

425

33,732

53.0%

$71.67

$38.01

Travelodge 

406

30,012

52.5%

$72.15

$37.88

Microtel Inns & Suites by Wyndham

337

24,325

58.3%

$69.26

$40.36

Knights Inn 

375

22,841

46.3%

$51.42

$23.83

TRYP by Wyndham

114

16,322

66.0%

$77.88

$51.40

Wingate by Wyndham

149

13,568

64.2%

$91.77

$58.96

Hawthorn Suites by Wyndham

109

10,743

67.8%

$82.68

$56.09

Dolce

22

5,110

53.4%

$165.67

$88.44

Total Hotel Group

7,929

689,752

55.3%

$68.60

$37.95

Vacation Ownership

Wyndham Vacation Ownership resorts

218

24,582

N/A

N/A

N/A

Total Wyndham Worldwide

8,147

714,334

As of and For the Nine Months Ended September 30, 2015

Average Revenue

Number of 

Average 

Average Daily 

 Per Available

Brand

Properties

Number of Rooms

Occupancy Rate

Rate (ADR)

 Room (RevPAR)

Hotel Group

Super 8 

2,600

166,656

59.2%

$51.01

$30.17

Days Inn 

1,785

142,613

52.5%

$68.20

$35.83

Ramada 

838

117,044

55.5%

$75.78

$42.08

Wyndham Hotels and Resorts

210

45,537

61.8%

$111.39

$68.87

Howard Johnson 

403

43,803

51.1%

$62.91

$32.15

Baymont

396

31,480

54.5%

$69.23

$37.72

Travelodge 

414

30,692

52.9%

$69.14

$36.55

Microtel Inns & Suites by Wyndham

333

23,960

59.8%

$69.81

$41.73

Knights Inn 

383

23,464

46.9%

$48.56

$22.79

TRYP by Wyndham

122

17,641

62.4%

$80.87

$50.42

Wingate by Wyndham

148

13,450

65.4%

$89.70

$58.66

Hawthorn Suites by Wyndham

101

10,053

68.5%

$81.16

$55.62

Dolce

24

5,530

57.5%

$149.84

$86.20

Total Hotel Group

7,757

671,923

56.1%

$68.97

$38.72

Vacation Ownership

Wyndham Vacation Ownership resorts

211

24,095

N/A

N/A

N/A

Total Wyndham Worldwide

7,968

696,018

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
Statements of Income

Three Months Ended September 30, 

2016

2015

Diluted weighted average shares outstanding

110

118

Diluted EPS

$

1.78

$

1.61

Net income attributable to Wyndham shareholders

$

196

$

190

Adjustments:

Legacy costs (b)

General and administrative

(1)

1

Restructuring costs (c)

Operating

14

8

Asset impairments (d)

Operating

7

Contract termination (e)

Operating

7

14

Total adjustments before tax

20

30

Income tax benefit/(expense) on adjustments (f)

Provision for income taxes

(9)

(10)

Total adjustments after tax

11

20

Adjustments – EPS impact

$

0.11

$

0.17

Adjusted net income attributable to Wyndham shareholders

$

207

$

210

Adjusted diluted EPS

$

1.89

$

1.78

Nine Months Ended September 30, 

2016

2015

Diluted weighted average shares outstanding

112

120

Diluted EPS

$

4.01

$

3.93

Net income attributable to Wyndham shareholders

$

447

$

471

Adjustments:

Venezuela currency devaluation (g)

Operating

24

Acquisition costs (a)

Operating

1

3

Restructuring costs (c)

Operating

14

8

Early extinguishment of debt (h)

Interest expense

11

Asset impairments (d)

Operating

7

Contract termination (e)

Operating

7

14

Total adjustments before tax

57

32

Income tax benefit/(expense) on adjustments (i)

Provision for income taxes

(14)

(9)

Total adjustments after tax

43

23

Total adjustments – EPS impact

$

0.39

$

0.19

Adjusted net income attributable to Wyndham shareholders

$

490

$

494

Adjusted diluted EPS

$

4.40

$

4.12

Note:Amounts may not add due to rounding.

(a)

The amount for 2016 represents costs related to an acquisition that closed on July 1, 2016 at the Company’s destination network business. The amount for 2015 relates primarily to costs incurred in connection with the acquisition of Dolce Hotels and Resorts at the Company’s hotel group business during 2015.

(b)

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

(c)

Relates to costs incurred as a result of (i) enhancing organizational efficiency and rationalizing existing facilities during the three and nine months ended September 30, 2016 and (ii) various organization realignment initiatives across the Company during the three and nine months ended September 30, 2015.

(d)

Relates to a non-cash impairment charge related to the write-down of terminated in-process technology projects resulting from the decision to outsource its reservation system to a third-party provider at the Company’s hotel group business.

(e)

Relates to costs associated with the anticipated termination of a management contract at the Company’s hotel group business during both the three and nine months ended September 30, 2016 and 2015.

(f)

Relates to (i) the tax effect of the adjustments during both 2016 and 2015 and (ii) a $2 million state tax refund for legacy tax matters during 2016.

(g)

Represents the impact from the devaluation of the exchange rate of Venezuela at the Company’s destination network business during 2016.

(h)

Represents costs incurred in connection with the Company’s early repurchase of its 6.0% senior unsecured notes during 2016.

(i)

Relates to (i) the tax effect of the adjustments during both 2016 and 2015; (ii) a valuation allowance established in connection with the acquisition of Dolce Hotels and Resorts during 2015 and (iii) a $2 million state tax refund for legacy tax matters during 2016. There was no tax impact 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 these measures to assess our operating performance, both absolutely and in comparison to other companies, and in evaluating or making selected compensation decisions.  These supplemental disclosures are in addition to GAAP reported measures.  This non-GAAP reconciliation table should not be considered a substitute for, nor superior to, financial results and measures determined or calculated in accordance with GAAP.

Table 8

(1 of 3)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions)

Venezuela 

Currency 

Acquisition

Legacy

Restructuring

Contract

Adjusted

Three months ended March 31, 2016

EBITDA

Devaluation (b)

Costs(c)

Costs(d)

Costs(e)

Termination(f)

EBITDA

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

Note: Amounts may not add across 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 an acquisition that closed on July 1, 2016.

(d) Relates to the net benefit from the resolution of and adjustment to certain contingent liabilities and assets resulting 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 anticipated termination of a management contract.

Table 8

(2 of 3)

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions)

Legacy

Acquisition

Restructuring

Asset

Contract 

Adjusted 

Three months ended March 31, 2015

EBITDA

Adjustments(b)

Costs (c)

Costs (d)

Impairment (e)

Termination (f)

EBITDA

Hotel Group

$

76

$

$

3

$

$

$

$

79

Destination Network

105

(1)

104

Vacation Ownership

130

130

Total Reportable Segments

311

3

(1)

313

Corporate and Other (a)

(34)

(34)

Total Company

$

277

$

$

3

$

(1)

$

$

$

279

Three months ended June 30, 2015

Hotel Group

$

96

$

$

1

$

$

$

$

97

Destination Network

84

84

Vacation Ownership

182

182

Total Reportable Segments

362

1

363

Corporate and Other (a)

(30)

(1)

(31)

Total Company

$

332

$

(1)

$

1

$

$

$

$

332

Three months ended September 30, 2015

Hotel Group

$

83

$

$

$

4

$

7

$

14

$

108

Destination Network

134

3

137

Vacation Ownership

200

1

201

Total Reportable Segments

417

8

7

14

446

Corporate and Other (a)

(35)

1

(34)

Total Company

$

382

$

1

$

$

8

$

7

$

14

$

412

Three months ended December 31, 2015

Hotel Group

$

94

$

$

$

(1)

$

$

$

93

Destination Network

44

(1)

43

Vacation Ownership

174

174

Total Reportable Segments

312

(2)

310

Corporate and Other (a)

(37)

(37)

Total Company

$

275

$

$

$

(2)

$

$

$

273

Twelve months ended December 31, 2015

Hotel Group

$

349

$

$

3

$

3

$

7

$

14

$

376

Destination Network

367

1

2

370

Vacation Ownership

687

1

688

Total Reportable Segments

1,403

4

6

7

14

1,434

Corporate and Other (a)

(137)

(137)

Total Company

$

1,266

$

$

4

$

6

$

7

$

14

$

1,297

Note:  The sum of the quarters may not agree to the twelve months ended December 31, 2015 due to rounding.

(a) Includes the elimination of transactions between segments.

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

(c) Relates primarily to costs incurred in connection with the acquisition of Dolce Hotels and Resorts (January 2015).

(d) Relates to costs incurred as a result of various organizational realignment initiatives and the reversal of a portion of restructuring reserves that were established in prior periods.

(e) Relates to a non-cash impairment charge related to the write-down of terminated in-process technology projects resulting from the Company’s decision to outsource its reservation system to a third-party provider.

(f) Relates to costs associated with the anticipated termination of a management contract.

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:

2016

Q1

Q2

Q3

Q4

Full Year

Adjusted EBITDA

$

291

$

340

$

423

 N/A 

 N/A 

Share-based compensation expense (*)

13

20

14

 N/A 

 N/A 

Adjusted EBITDA excluding share-based compensation expense

$

304

$

360

$

437

 N/A 

 N/A 

2015

Q1

Q2

Q3

Q4

Full Year

Adjusted EBITDA

$

279

$

332

$

412

$

273

$

1,297

Share-based compensation expense (*)

15

13

13

15

55

Adjusted EBITDA excluding share-based compensation expense

$

294

$

345

$

425

$

288

$

1,352

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

(*) Excludes share-based compensation expenses for which there was no impact on EBITDA. Such costs amounted to $1 million during Q1, Q2 and Q3 2016
and $3 million for the full year 2015.  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

2016

Q1

Q2

Q3

Q4

Full Year

Gross VOI sales

$

428

$

518

$

564

 N/A 

 N/A 

Less: Sales under WAAM Fee-for-Service

(23)

(20)

(20)

 N/A 

 N/A 

Gross VOI sales, net of WAAM Fee-for-Service sales

405

498

544

 N/A 

 N/A 

Less: Loan loss provision

(63)

(90)

(104)

 N/A 

 N/A 

Vacation ownership interest sales

$

342

$

409

$

441

 N/A 

 N/A 

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)

Plus: 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

2013

Gross VOI sales

$

384

$

481

$

536

$

488

$

1,889

Less: Sales under WAAM Fee-for-Service

(36)

(44)

(51)

(29)

(160)

Gross VOI sales, net of WAAM Fee-for-Service sales

347

437

486

459

1,729

Less: Loan loss provision

(84)

(90)

(102)

(73)

(349)

Less: Impact of percentage-of-completion accounting

(1)

(1)

Vacation ownership interest sales

$

263

$

347

$

384

$

384

$

1,379

_____________

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

FullYear

2016

$

25

$

22

$

31

 N/A 

 N/A 

2015

$

24

$

17

$

32

$

27

$

100

2014

$

25

$

21

$

27

$

24

$

97

2013

$

24

$

18

$

22

$

25

$

89

Table 10

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION OF 2016 OUTLOOK

(In millions, except per share data)

Outlook (a)

Outlook (a)

As Adjusted

(GAAP)

Adjustments

(Non-GAAP)

Net revenues

$

5,650

$

$

5,650

EBITDA

$

1,329

$

46

(b) 

$

1,375

Depreciation and amortization

(252)

(252)

Interest expense, net

(139)

11

(c)  

(128)

Income before taxes

938

57

995

Income taxes

(348)

(14)

(d)  

(362)

Net income attributable to noncontrolling interest

(1)

(1)

Net income attributable to Wyndham shareholders

$

587

$

43

$

630

Diluted earnings per share

$5.29 – $5.32

$5.68 – $5.71

Diluted shares

111

111

(a) Outlook represents Company’s approximate projection of performance for the fourth quarter of 2016.  Projections may not total because the Company does not expect the actual results of all items to be at the precise amount simultaneously.

(b) For a description of such adjustments, see Table 7.

(c) Adjustment represents early extinguishment of debt in the first quarter of 2016.

(d) Represents the tax effect of the adjustments and a $2 million state tax refund for legacy tax matters.

Table 11

Wyndham Worldwide Corporation

NON-GAAP RECONCILIATION – CONSTANT CURRENCY AND CURRENCY NEUTRAL

(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 September 30,

2016

2015

% Change

Total revenues as reported

$

1,573

$

1,564

1%

Adjustments:

Foreign currency – constant currency

18

*

Incremental revenues from acquisitions

(7)

*

Total revenues in constant currency and excluding acquisitions

$

1,584

$

1,564

1%

Destination Network revenue as reported

$

486

$

476

2%

Adjustments:

Foreign currency – constant currency

19

*

Incremental revenues from acquisitions

(7)

*

Total Destination Network revenues in constant currency and excluding acquisitions

$

498

$

476

5%

Exchange revenue as reported

$

159

$

157

1%

Adjustments:

Foreign currency – constant currency

1

*

Total Exchange revenues in constant currency and excluding acquisitions

$

160

$

157

2%

Rental revenue as reported

$

304

$

296

3%

Adjustments:

Foreign currency – constant currency

18

*

Incremental revenues from acquisitions

(7)

*

Total Rental revenues in constant currency and excluding acquisitions

$

315

$

296

6%

Currency-neutral Adjusted EBITDA:

Three months ended September 30,

2016

2015

% Change

Adjusted EBITDA (a)

$

423

$

412

3%

Adjustments:

Foreign currency – currency-neutral

10

*

Incremental EBITDA from acquisitions

(2)

*

Currency-neutral Adjusted EBITDA excluding acquisitions

$

431

$

412

5%

Destination Network Adjusted EBITDA (a)

$

142

$

137

4%

Adjustments:

Foreign currency – currency-neutral

8

*

Incremental EBITDA from acquisitions

(2)

*

Destination Network Currency-neutral Adjusted EBITDA excluding acquisitions

$

148

$

137

8%

* Not meaningful.

(a) See Table 8 for a reconciliation of EBITDA to Adjusted EBITDA and Table 2 for a reconciliation of EBITDA to Net Income

Table 12

Wyndham Worldwide Corporation

SCHEDULE OF DEBT

(In millions)

September 30,

December 31,

September 30,

2016

2015

2015

Securitized vacation ownership debt (a)

Term notes

$

1,818

$

1,867

$

1,819

Bank conduit facility (b)

280

239

267

Total securitized vacation ownership debt (c)

2,098

2,106

2,086

Less: Current portion of securitized vacation ownership debt

200

209

210

Long-term securitized vacation ownership debt

$

1,898

$

1,897

$

1,876

Debt:

   Revolving credit facility (due July 2020) (d)

$

12

$

7

$

20

   Commercial paper (e)

404

109

87

   Term loan (due March 2021)

323

   $315 million 6.00% senior unsecured notes (due December 2016)

316

316

   $300 million 2.95% senior unsecured notes (due March 2017) (f)

300

299

299

   $14 million 5.75% senior unsecured notes (due February 2018)

14

14

14

   $450 million 2.50% senior unsecured notes (due March 2018)

449

448

448

   $40 million 7.375% senior unsecured notes (due March 2020)

40

40

40

   $250 million 5.625% senior unsecured notes (due March 2021)

247

247

247

   $650 million 4.25% senior unsecured notes (due March 2022)

648

648

648

   $400 million 3.90% senior unsecured notes (due March 2023)

407

408

408

   $350 million 5.10% senior unsecured notes (due October 2025)

338

337

337

   Capital leases

151

153

158

   Other

18

49

48

Total long-term debt

3,351

3,075

3,070

Less: Current portion of long-term debt

33

44

44

Long-term debt

$

3,318

$

3,031

$

3,026

Share Button
About the Author