Press Release

Printer Friendly Version View printer-friendly version
<< Back
Wyndham Worldwide Reports Fourth Quarter and Full Year 2009 Results
--Company Triples Dividend Payout --Resumes Share Repurchase Program
PARSIPPANY, N.J., Feb 10, 2010 /PRNewswire via COMTEX/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months and year ended December 31, 2009. Separately, the Company also announced an increase in its quarterly cash dividend and that it plans to resume its share repurchase program.

FOURTH QUARTER and FULL-YEAR HIGHLIGHTS:

Wyndham Worldwide generated fourth quarter diluted earnings per share (EPS) of $0.40, compared with Company-issued guidance of $0.35 - $0.38. For the year ended December 31, 2009, the Company generated net cash from operating activities of approximately $690 million, compared with $109 million in 2008.

"We are pleased to report solid earnings and increasing free cash flow for the quarter and the year, and to announce an increase in our dividend along with our intention to resume our share repurchase program. While continuing high unemployment and economic uncertainty created a difficult operating environment, our results reflect resilient business models and strong execution," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "Going forward, we remain focused on cash flow generation, transforming the Company by rebalancing our worldwide business portfolio to our fee-for-service businesses and positioning our businesses for future earnings growth."

Increases Quarterly Dividend Payout

The Company's Board of Directors authorized an increase of the quarterly cash dividend to $0.12 from $0.04 per share, beginning with the dividend that is expected to be declared in the first quarter of 2010. With this increase, the dividend is equivalent to an annual rate of $0.48 per share.

Resumes Share Repurchase Program

The Company plans to resume repurchase of its common stock under its existing $200 million stock repurchase program, which currently has $157 million remaining capacity. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements and other factors. Repurchases may be conducted in the open market or in privately negotiated transactions.

FOURTH QUARTER 2009 OPERATING RESULTS

Revenues for the fourth quarter of 2009 were $913 million, relatively flat compared with the prior-year period. Net income for the fourth quarter of 2009 was $73 million, or $0.40 diluted EPS, compared with a fourth quarter of 2008 net loss of $1.4 billion, or $7.63 loss per diluted share. The prior-year period includes the after-tax impact of $1.4 billion, or $8.10 per diluted share, of goodwill impairments, foreign currency losses, restructuring costs and legacy items. Excluding these items, adjusted net income would have been $84 million, or $0.47 diluted adjusted EPS for the fourth quarter of 2008.

FULL YEAR 2009 OPERATING RESULTS

Revenues for full year 2009 were $3.8 billion, a decline of 12% over the prior-year period, reflecting the following:

  • Lodging revenues were $660 million, a 12% decrease compared with 2008, primarily resulting from a global decline in revenue per available room (RevPAR).
  • Exchange and Rentals revenues were $1.2 billion, an 8% decrease compared with 2008, primarily resulting from unfavorable foreign exchange rate movements. In constant currency, revenues declined 2%.
  • Vacation Ownership revenues were $1.9 billion, a 15% decrease compared with 2008, primarily resulting from the Company's previously announced initiative to reduce capital deployed in the business, which included sales office closures and the elimination of certain marketing programs that resulted in fewer tours.

Net income for full year 2009 was $293 million, or $1.61 diluted EPS, compared with a prior-year period net loss of $1.1 billion, or $6.05 loss per diluted share. Adjusted net income for full year 2009 was $327 million, or $1.80 diluted EPS, compared with adjusted net income of $388 million, or $2.18 diluted adjusted EPS for full year 2008. Adjusted net income for full year 2009 excludes the after-tax impact of $34 million, or $0.19 per diluted share, of restructuring costs and legacy items. Adjusted net income for the prior-year period excludes the after-tax impact of $1.5 billion, or $8.23 per diluted share, of goodwill and other impairments, foreign currency losses, restructuring costs and legacy items.

FOURTH QUARTER 2009 BUSINESS UNIT RESULTS

Wyndham Hotel Group

Revenues were $149 million in the fourth quarter of 2009, a decline of 12% compared with the fourth quarter of 2008, primarily reflecting the global RevPAR decline.

System-wide RevPAR declined 11.9% in the fourth quarter of 2009. In constant currency, fourth quarter 2009 system-wide RevPAR decreased 13.3%, reflecting declines of 13.8% and 15.4% in domestic and international RevPAR, respectively.

Fourth quarter 2009 EBITDA was $32 million, compared with $38 million in the fourth quarter of 2008, which included a $16 million non-cash impairment charge. The year-over-year change reflects the global RevPAR decline, increased bad debt reserve primarily related to the hotel management business, and a non-cash impairment charge associated with an underperforming joint venture in the hotel management business, partially offset by cost containment initiatives.

As of December 31, 2009, the Company's hotel system consisted of approximately 7,110 properties and 597,700 rooms, of which 22% were international. The development pipeline included approximately 950 hotels and 108,100 rooms, of which 51% were new construction and 43% were international.

Wyndham Exchange and Rentals

Revenues were $258 million in the fourth quarter of 2009, a 3% increase compared with the fourth quarter of 2008. In constant currency, revenues were relatively flat.

Annual dues and exchange revenues were $106 million, a 5% increase from the prior-year period. In constant currency, revenues increased $2 million, or 2% compared with the fourth quarter of 2008, driven by a 2% growth in the average number of members.

Vacation rental revenues were $122 million, an 8% increase from the prior-year period. In constant currency, revenues increased $2 million, or 2%, compared with the fourth quarter of 2008, primarily driven by a 3% increase in average price per vacation rental, partially offset by a 1% decrease in rental transaction volume.

Ancillary revenues were $30 million, a 17% decrease from the fourth quarter of 2008. In constant currency, revenues decreased 19% due primarily to lower fees generated from programs with affiliated resorts and our termination of a low margin travel service contract.

Fourth quarter 2009 EBITDA was $48 million, compared with a loss of $4 million in the fourth quarter of 2008, which included $67 million of asset impairments, foreign currency conversion losses and restructuring costs. Excluding these items and an unfavorable 2009 net effect of foreign currency of $15 million, 2009 EBITDA was flat, compared with 2008 adjusted EBITDA.

Wyndham Vacation Ownership

Driven by the previously announced initiative to reduce capital deployed in this business, gross vacation ownership interest (VOI) sales declined 21%, from the prior-year period, to $343 million in the fourth quarter of 2009. The year-over-year change reflects a 36% increase in volume per guest which partially offset the planned reduction in tour flow of 41%.

Total segment revenues were $508 million in the fourth quarter of 2009, a 3% increase from the fourth quarter of 2008. This change was driven by a decline in our provision for loan losses, a favorable impact from the percentage-of-completion (POC) method of accounting and higher ancillary revenue, partially offset by lower VOI sales. Under the POC method of accounting for VOI sales, the Company recognized $47 million of previously deferred revenue during the fourth quarter of 2009, compared with $14 million in the fourth quarter 2008.

EBITDA for the fourth quarter of 2009 was $132 million, compared with a loss of $1.3 billion in the fourth quarter of 2008, which included $1.4 billion of goodwill, other impairments and restructuring costs. Excluding these items, 2009 EBITDA increased $41 million, compared with the prior-year period, reflecting the net impact of the planned reduction in the VOI business and its related expenses, a lower provision for loan losses, and the impact from the net increase in the recognition of revenue previously deferred under the POC method of accounting.

Other Items

Net interest expense in the fourth quarter of 2009 was $33 million, a $15 million increase from the fourth quarter of 2008. The increase reflected lower capitalized interest and long-term debt issuances in May 2009, the proceeds of which were used primarily to reduce revolving credit facility borrowings, which had a lower interest rate.

Balance Sheet Information as of December 31, 2009:

  • Cash and cash equivalents of approximately $155 million compared with $135 million at December 31, 2008
  • Vacation ownership contract receivables, net, of $3.1 billion compared with $3.3 billion at December 31, 2008
  • Vacation ownership and other inventory of $1.3 billion, unchanged from December 31, 2008
  • Securitized vacation ownership debt of $1.5 billion compared with $1.8 billion at December 31, 2008
  • Other debt of $2.0 billion, unchanged from December 31, 2008; remaining borrowing capacity on the revolving credit facility was approximately $870 million compared with approximately $290 million as of December 31, 2008

A schedule of debt is included in the financial tables section of this press release.

Guidance

The Company's full-year 2010 guidance is:

  • Revenues of $3.5 - $3.9 billion
  • Adjusted EBITDA of $775 - $800 million

The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items and restructuring costs, if any, which may have a positive or negative impact on reported results. If economic conditions improve or deteriorate materially from current levels, these assumptions and our guidance may change materially. It is not practicable to provide a reconciliation of forecasted adjusted EBITDA to the most directly comparable GAAP measure because certain items cannot be reasonably estimated or predicted at this time. Any such items could be significant to our financial results.

Conference Call Information

Wyndham Worldwide Corporation will provide a webcast of its conference call to discuss the Company's fourth quarter and full year 2009 financial results on Wednesday, February 10, 2010 at 8:30 a.m. ET. Listeners can access the webcast live through the company's website at www.wyndhamworldwide.com/investors/. The conference call also may be accessed by dialing (800) 369-2052 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 12:00pm ET on February 10, 2010. A telephone replay will be available for approximately 90 days beginning at 12:00pm ET on February 10, 2010 at (866) 490-2538.

Presentation of Financial Information

Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.

About Wyndham Worldwide

As one of the world's largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses approximately 7,110 franchised hotels and approximately 597,700 hotel rooms worldwide. Wyndham Exchange and Rentals offers leisure travelers, including its 3.8 million members, access to over 65,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 155 vacation ownership resorts serving over 820,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,000 employees globally.

For more information about Wyndham Worldwide, please visit the Company's web site at www.wyndhamworldwide.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations for the future, including, without limitation the information under the "Guidance", which are based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings, related financial and operating measures, dividend policy and share repurchases.

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, changes in interest expense relating to the Company's existing or future indebtedness, the economic environment for the hospitality industry, the impact of war and terrorist activity, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Quarterly Report on Form 10-Q, filed with the SEC on November 5, 2009. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.



                                                                      Table 1
                           Wyndham Worldwide Corporation
                     OPERATING RESULTS OF REPORTABLE SEGMENTS
                                   (In millions)

    In addition to other measures, management evaluates the operating results
    of each of its reportable segments based upon net revenues and "EBITDA,"
    which is defined as net income/(loss) before depreciation and
    amortization, interest expense (excluding consumer financing interest),
    interest income (excluding consumer financing interest) and income taxes,
    each of which is presented on the Company's Consolidated Statements of
    Operations.  The Company believes that EBITDA is a useful measure of
    performance for the Company's industry segments which, when considered
    with GAAP measures, the Company believes gives a more complete
    understanding of the Company's operating performance.  The Company's
    presentation of EBITDA may not be comparable to similarly-titled measures
    used by other companies.

    The following tables summarize net revenues and EBITDA for reportable
    segments, as well as reconcile EBITDA to net income/(loss) for the three
    and twelve months ended December 31, 2009 and 2008:



                             Three Months Ended December 31,
                             -------------------------------
                             2009                       2008
                             ----                       ----
                          Net                        Net
                       Revenues    EBITDA         Revenues    EBITDA (f)
                       ---------  --------        ---------  --------
    Lodging               $149       $32  (c)        $170       $38  (g)
    Vacation Exchange
     and Rentals           258        48              250        (4) (h)
    Vacation Ownership     508       132  (d)         492    (1,321) (i)
                           ---       ---              ---    ------
       Total Reportable
        Segments           915       212              912    (1,287)
    Corporate and
     Other (a) (b)          (2)      (18)              (1)        7
                            --       ---               --         -
       Total Company      $913      $194             $911   $(1,280)
                          ====      ====             ====   =======

    Reconciliation of EBITDA
     to Net Income/(Loss)
    ------------------------

    EBITDA                          $194                    $(1,280)
    Depreciation and
     amortization                     44                         47
    Interest expense                  35                         22
    Interest income                   (2)                        (4)
                                      --                         --
    Income/(loss) before
     income taxes                    117                     (1,345)
    Provision for income taxes        44                         11
                                      --                         --
    Net income/(loss)                $73                    $(1,356)
                                     ===                    =======


                            Twelve Months Ended December 31,
                            --------------------------------
                                    2009                       2008
                                    ----                       ----
                          Net                        Net
                       Revenues    EBITDA (j)     Revenues    EBITDA (l)
                       ---------  --------        ---------  --------
    Lodging               $660      $175  (c)        $753      $218  (g)
    Vacation Exchange
     and Rentals         1,152       287            1,259       248  (h)
    Vacation Ownership   1,945       387  (k)       2,278    (1,074) (i)(m)
                         -----       ---            -----    ------
       Total Reportable
        Segments         3,757       849            4,290      (608)
    Corporate and
     Other (a) (e)          (7)      (71)              (9)      (27)
                            --       ---               --       ---
       Total Company    $3,750      $778           $4,281     $(635)
                        ======      ====           ======     =====

    Reconciliation of EBITDA
     to Net Income/(Loss)
    ------------------------

    EBITDA                          $778                      $(635)
    Depreciation and
     amortization                    178                        184
    Interest expense                 114                         80
    Interest income                   (7)                       (12)
                                      --                        ---
    Income/(loss) before
     income taxes                    493                       (887)
    Provision for income taxes       200                        187
                                     ---                        ---
    Net income/(loss)               $293                    $(1,074)
                                    ====                    =======
    ----------
    (a)  Includes the elimination of transactions between segments.
    (b)  Includes $14 million ($7 million, net of tax) of a net benefit during
         the three months ended December 31, 2008 related to the resolution of
         and adjustment to certain contingent liabilities and assets.
    (c)  Includes a non-cash impairment charge of $6 million ($3 million,
         net of tax) to reduce the value of an underperforming joint venture
         in the Company's lodging property management business.
    (d)  Includes (i) restructuring costs of $1 million ($1 million, net of
         tax) and (ii) a non-cash impairment charge of $1 million ($1 million,
         net of tax) to reduce the value of assets held for sale related to
         a vacation ownership property that is no longer consistent with the
         Company's development plans.
    (e)  Includes $6 million ($6 million, net of tax) of a net expense and $18
         million ($6 million, net of tax) of a net benefit during the twelve
         months ended December 31, 2009 and 2008, respectively, related to the
         resolution of and adjustment to certain contingent liabilities and
         assets.
    (f)  Includes restructuring costs of $7 million and $66 million for
         Vacation Exchange and Rentals and Vacation Ownership, respectively.
         The after-tax impact of such costs is $45 million.
    (g)  Includes a non-cash impairment charge of $16 million ($10 million,
         net of tax) related to the write down of franchise agreements of one
         of the Company's brands.
    (h)  Includes (i) non-cash impairment charges of $36 million ($28 million,
         net of tax) due to trademark and fixed asset write downs related to
         the Company's vacation rentals businesses and the write-off of the
         Company's investment in a joint venture and (ii) a cash charge of $24
         million ($24 million, net of tax) due to foreign currency losses.
    (i)  Includes (i) a non-cash goodwill impairment charge of $1,342 million
         ($1,337 million, net of tax) to reflect reduced future cash flow
         estimates and (ii) a non-cash impairment charge of $4 million ($3
         million, net of tax) related to the termination of a development
         project.
    (j)  Includes restructuring costs of $3 million, $6 million, $37 million
         and $1 million for Lodging, Vacation Exchange and Rentals, Vacation
         Ownership and Corporate and Other, respectively.  The after-tax
         impact of such costs is $29 million.
    (k)  Includes non-cash impairment charges of $9 million ($7 million, net
         of tax) to reduce the value of certain vacation ownership properties
         and related assets held for sale that are no longer consistent with
         the Company's development plans.
    (l)  Includes restructuring costs of $4 million, $9 million and $66
         million for Lodging, Vacation Exchange and Rentals and Vacation
         Ownership, respectively.  The after-tax impact of such costs is $49
         million.
    (m)  Includes a non-cash impairment charge of $28 million ($17 million,
         net of tax) due to the Company's initiative to rebrand its vacation
         ownership trademarks to the Wyndham brand.



                                                                      Table 2
                           Wyndham Worldwide Corporation
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (In millions, except per share data)


                                              Three Months    Twelve Months
                                                 Ended            Ended
                                             December 31,     December 31,
                                            --------------   --------------
                                             2009     2008    2009     2008
                                             ----     ----    ----     ----
    Net revenues
      Service fees and membership            $371     $360  $1,613   $1,705
      Vacation ownership interest sales       287      309   1,053    1,463
      Franchise fees                           98      113     440      514
      Consumer financing                      109      112     435      426
      Other                                    48       17     209      173
                                               --       --     ---      ---
    Net revenues                              913      911   3,750    4,281
                                              ---      ---   -----    -----

    Expenses
      Operating                               356      337   1,501    1,622
      Cost of vacation ownership interests     47       52     183      278
      Consumer financing interest              37       37     139      131
      Marketing and reservation               137      171     560      830
      General and administrative (a) (b)      136      124     533      561
      Goodwill and other impairments            7(c) 1,398(d)   15(c) 1,426(d)
      Restructuring costs (e)                   1       73      47       79
      Depreciation and amortization            44       47     178      184
                                               --       --     ---      ---
    Total expenses                            765    2,239   3,156    5,111
                                              ---    -----   -----    -----

    Operating income/(loss)                   148   (1,328)    594     (830)
    Other income, net                          (2)      (1)     (6)     (11)
    Interest expense                           35       22     114       80
    Interest income                            (2)      (4)     (7)     (12)
                                               --       --      --      ---

    Income/(loss) before income taxes         117   (1,345)    493     (887)
    Provision for income taxes                 44       11     200      187
                                               --       --     ---      ---

    Net income/(loss)                         $73  $(1,356)   $293  $(1,074)
                                              ===  =======    ====  =======

    Earnings/(losses) per share
      Basic                                 $0.41   $(7.63)  $1.64   $(6.05)
      Diluted                                0.40    (7.63)   1.61    (6.05)

    Weighted average shares outstanding
      Basic                                   179      178     179      178
      Diluted                                 184      178     182      178
    ----------
    (a)  Includes (i) $14 million ($7 million, net of tax) of a net benefit
         during the three months ended December 31, 2008 and $6 million ($6
         million, net of tax) of a net expense and $18 million ($6 million,
         net of tax) of a net benefit during the twelve months ended December
         31, 2009 and 2008, respectively, related to the resolution of and
         loss to certain contingent liabilities and assets.
    (b)  Includes a cash charge of $24 million ($24 million, net of tax) for
         Vacation Exchange and Rentals due to foreign currency losses during
         the three and twelve months ended December 31, 2008.
    (c)  Represents (i) a non-cash impairment charge of $6 million ($3
         million, net of tax) to reduce the value of an underperforming
         joint venture in the Company's lodging property management business
         and (ii) a non-cash impairment charge of $1 million ($1 million,
         net of tax) to reduce the value of assets held for sale related
         to a vacation ownership property that is no longer consistent with
         the Company's development plans during the three and twelve
         months ended December 31, 2009.  The twelve months ended December 31,
         2009 also includes non-cash impairment charges of $8 million ($6
         million, net of tax) to reduce the value of certain other vacation
         ownership properties and related assets held for sale that are no
         longer consistent with the Company's development plans.
    (d)  Represents (i) a non-cash goodwill impairment charge of $1,342
         million ($1,337 million, net of tax) for Vacation Ownership to
         reflect reduced future cash flow estimates, (ii) non-cash impairment
         charges of $36 million ($28 million, net of tax) for Vacation
         Exchange and Rentals due to trademark and fixed asset write downs
         related to the Company's vacation rentals businesses and the write-
         off of the Company's investment in a joint venture, (iii) a non-cash
         impairment charge of $16 million ($10 million, net of tax) for
         Lodging related to the write down of franchise agreements of one of
         the Company's brands and (iv) a non-cash impairment charge of $4
         million ($3 million, net of tax) for Vacation Ownership related to
         the termination of a development project during the three and twelve
         months ended December 31, 2008.  The twelve months ended December 31,
         2008 also includes a non-cash impairment charge of $28 million ($17
         million, net of tax) for Vacation Ownership due to the Company's
         initiative to rebrand its vacation ownership trademarks to the
         Wyndham brand.
    (e)  Relates to costs incurred as a result of various strategic
         initiatives approved by the Company and commenced during 2008.  Such
         amounts, net of tax, were $1 million and $29 million during the three
         and twelve months ended December 31, 2009, respectively, and $45
         million and $49 million during the three and twelve months ended
         December 31, 2008, respectively.



                                                                      Table 3
                                                                      (1 of 3)
                        Wyndham Worldwide Corporation
                             OPERATING STATISTICS

                                                                      Full
                     Year     Q1        Q2        Q3        Q4        Year
                     ----     --        --        --        --        -----
    Lodging (a)
       Number of
        Rooms (b)    2009  588,500   590,200   590,900   597,700        N/A
                     2008  551,100   551,500   583,400   592,900        N/A
                     2007  539,300   541,700   540,900   550,600        N/A
                     2006  525,500   535,900   533,700   543,200        N/A

       RevPAR        2009   $27.69    $32.38    $34.81    $26.47      $30.34
                     2008   $32.21    $38.87    $41.93    $30.03      $35.74
                     2007   $31.35    $38.35    $43.10    $33.09      $36.48
                     2006   $30.45    $36.97    $40.82    $31.41      $34.95

    Vacation Exchange
     and Rentals
       Average
        Number of
        Members (in
        000s)        2009    3,789     3,795     3,781     3,765       3,782
                     2008    3,632     3,682     3,673     3,693       3,670
                     2007    3,474     3,506     3,538     3,588       3,526
                     2006    3,292     3,327     3,374     3,429       3,356

       Annual Dues
        and Exchange
        Revenue Per
        Member       2009  $134.38   $117.59   $116.76   $112.10     $120.22
                     2008  $150.84   $128.91   $124.51   $109.56     $128.37
                     2007  $155.60   $132.33   $131.38   $124.59     $135.85
                     2006  $152.10   $130.37   $132.31   $128.13     $135.62

       Vacation Rental
        Transactions
         (in 000s)   2009      387       324       367       278       1,356
                     2008      387       319       360       282       1,347
                     2007      398       326       360       293       1,376
                     2006      385       310       356       293       1,344

       Average Net
        Price Per
        Vacation
        Rental       2009  $335.54   $422.00   $505.82   $436.79     $423.04
                     2008  $412.74   $477.63   $553.69   $400.09     $463.10
                     2007  $349.73   $415.71   $506.78   $426.93     $422.83
                     2006  $312.51   $374.91   $442.75   $356.16     $370.93

    Vacation Ownership
       Gross Vacation
        Ownership
        Interest
        Sales (in
        000s)        2009 $280,000  $327,000  $366,000  $343,000  $1,315,000
                     2008 $458,000  $532,000  $566,000  $432,000  $1,987,000
                     2007 $430,000  $523,000  $552,000  $488,000  $1,993,000
                     2006 $357,000  $434,000  $482,000  $469,000  $1,743,000

       Tours         2009  137,000   164,000   173,000   142,000     617,000
                     2008  255,000   314,000   334,000   240,000   1,143,000
                     2007  240,000   304,000   332,000   268,000   1,144,000
                     2006  208,000   273,000   312,000   254,000   1,046,000

       Volume Per
        Guest (VPG)  2009   $1,866    $1,854    $1,944    $2,210      $1,964
                     2008   $1,668    $1,583    $1,550    $1,630      $1,602
                     2007   $1,607    $1,596    $1,545    $1,690      $1,606
                     2006   $1,475    $1,426    $1,434    $1,623      $1,486

    ----------
    Note: Full year amounts may not foot across due to rounding.
    (a)  Quarterly drivers in the Lodging segment include the acquisitions of
         Microtel Inns & Suites and Hawthorn Suites (July 2008) and Baymont
         Inn & Suites (April 2006) from their acquisition dates forward.
         Therefore, the operating statistics are not presented on a comparable
         basis.
    (b)  Numbers include affiliated rooms from the fourth quarter of 2006
         forward.


                                                                      Table 3
                                                                      (2 of 3)

                             Wyndham Worldwide Corporation
                                    ADDITIONAL DATA

                                                                       Full
                     Year      Q1        Q2        Q3        Q4        Year
                     ----      --        --        --        --        -----
    Lodging (a)
       Number of
        Properties
        (b)          2009    6,990     7,020     7,040     7,110        N/A
                     2008    6,550     6,560     6,970     7,040        N/A
                     2007    6,450     6,460     6,460     6,540        N/A
                     2006    6,300     6,440     6,420     6,470        N/A

    Vacation Ownership
       Deferred
        Revenues (in
        000s) (c)    2009  $66,516   $37,140   $36,102   $46,784    $186,543
                     2008 $(81,716)  $(5,240)  $(2,023)  $13,870    $(75,108)
                     2007   $3,906   $(4,908)     $506  $(21,092)   $(21,588)
                     2006  $12,708     $(221) $(23,491) $(10,675)   $(21,679)

       Provision
        for Loan
        Losses (in
        000s) (d)    2009 $107,202  $121,641  $117,111  $103,115    $449,069
                     2008  $82,344  $112,669  $118,609  $136,090    $449,712
                     2007  $60,869   $75,032   $85,762   $83,644    $305,307
                     2006  $61,242   $55,872   $63,213   $78,680    $259,007

    ----------
    Note: Full year amounts may not foot across due to rounding.
    (a)  Information includes the acquisitions of Microtel Inns & Suites and
         Hawthorn Suites (July 2008) and Baymont Inn & Suites (April 2006)
         from their acquisition dates forward.  Therefore, the data is not
         presented on a comparable basis.
    (b)  Numbers include affiliated hotels from the fourth quarter of 2006
         forward.
    (c)  Represents the revenue that is deferred under the percentage of
         completion method of accounting.  Under the percentage of completion
         method of accounting, a portion of the total revenue from a vacation
         ownership contract sale is not recognized if the construction of the
         vacation resort has not yet been fully completed.  This revenue will
         be recognized in future periods in proportion to the costs incurred
         as compared to the total expected costs for completion of
         construction of the vacation resort.  Positive amounts represent the
         recognition of previously deferred revenues.
    (d)  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
                                                                     (3 of 3)

                             Wyndham Worldwide Corporation
                                  OPERATING STATISTICS

                                   GLOSSARY OF TERMS
                                   -----------------

    Lodging

    Number of Rooms: Represents the number of rooms at lodging properties at
    the end of the period which are either (i) under franchise and/or
    management agreements, (ii) properties affiliated with Wyndham Hotels and
    Resorts brand for which we receive a fee for reservation and/or other
    services provided or (iii) properties managed under a joint venture.

    Average Occupancy Rate: Represents the percentage of available rooms
    occupied during the period.

    Average Daily Rate (ADR): Represents the average rate charged for renting
    a lodging room for one day.

    RevPAR:  Represents revenue per available room and is calculated by
    multiplying average occupancy rate by ADR.  Comparable RevPAR represents
    RevPAR of hotels which are included in both periods.


    Vacation Exchange and Rentals

    Average Number of Members:  Represents members in our vacation exchange
    programs who pay annual membership dues. For additional fees, such
    participants are entitled to exchange intervals for intervals at other
    properties affiliated with our vacation exchange business. In addition,
    certain participants may exchange intervals for other leisure-related
    products and services.

    Annual Dues and Exchange Revenue Per Member: Represents total revenues
    from annual membership dues and exchange fees generated for the period
    divided by the average number of vacation exchange members during the
    year.

    Vacation Rental Transactions: Represents the number of transactions that
    are generated in connection with customers booking their vacation rental
    stays through us. In our European vacation rentals businesses, one rental
    transaction is recorded each time a standard one-week rental is booked;
    however, in the United States, one rental transaction is recorded each
    time a vacation rental stay is booked, regardless of whether it is less
    than or more than one week.

    Average Net Price Per Vacation Rental: Represents the net rental price
    generated from renting vacation properties to customers divided by the
    number of rental transactions.


    Vacation Ownership

    Gross Vacation Ownership Interest Sales: Represents gross sales of
    vacation ownership interests (including tele-sales upgrades, which are a
    component of upgrade sales) before deferred sales and loan loss
    provisions.

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

    Volume per Guest (VPG): Represents revenue per guest and is calculated by
    dividing the gross vacation ownership interest sales, excluding tele-sales
    upgrades, which are a component of upgrade sales, by the number of tours.


    General

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



                                                                      Table 4

                        Wyndham Worldwide Corporation
                    Revenue Detail by Reportable Segment
                                (In millions)


                                                    2009
                                                    ----
                                     Q1     Q2     Q3     Q4      Year
                                   ------ ------ ------ ------  --------
    Lodging
      Royalties and Franchise Fees    $57    $68    $72     57       254
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)    54     66     73     53       246
      Property Management
       Reimbursable Revenues (b)       22     23     21     19        85
      Ancillary Revenues (c)           21     17     17     20        75
                                       --     --     --     --        --
      Total Lodging                   154    174    183    149       660
                                      ---    ---    ---    ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues               127    112    110    106       455
      Rental Revenues                 130    137    185    122       574
      Ancillary Revenues (d)           30     31     32     30       123
                                       --     --     --     --       ---
      Total Vacation Exchange and
       Rentals                        287    280    327    258     1,152
                                      ---    ---    ---    ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                          239    242    285    287     1,053
      Consumer Financing              109    109    108    109       435
      Property Management Fees         91     94     96     95       376
      Ancillary Revenues (e)           23     22     19     17        81
                                       --     --     --     --        --
      Total Vacation Ownership        462    467    508    508     1,945
                                      ---    ---    ---    ---     -----
    Total Reportable Segments        $903   $921 $1,018   $915    $3,757
                                     ====   ==== ======   ====    ======


                                                    2008
                                                    ----
                                     Q1     Q2     Q3     Q4      Year
                                   ------ ------ ------ ------  --------
    Lodging
      Royalties and Franchise Fees    $64    $78    $88    $66      $297
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)    60     75     84     61       280
      Property Management
       Reimbursable Revenues (b)       27     26     25     21       100
      Ancillary Revenues (c)           19     21     16     22        76
                                       --     --     --     --        --
      Total Lodging                   170    200    213    170       753
                                      ---    ---    ---    ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues               137    119    114    101       471
      Rental Revenues                 160    153    199    113       624
      Ancillary Revenues (d)           44     42     41     36       164
                                       --     --     --     --       ---
      Total Vacation Exchange and
       Rentals                        341    314    354    250     1,259
                                      ---    ---    ---    ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                          294    414    446    309     1,463
      Consumer Financing               99    104    111    112       426
      Property Management Fees         85     84     89     89       346
      Ancillary Revenues (e)           26     19     15    (18)       43
                                       --     --     --    ---        --
      Total Vacation Ownership        504    621    661    492     2,278
                                      ---    ---    ---    ---     -----
    Total Reportable Segments      $1,015 $1,135 $1,228   $912    $4,290
                                   ====== ====== ======   ====    ======


                                                    2007
                                                    ----
                                     Q1     Q2     Q3     Q4      Year
                                   ------ ------ ------ ------  --------
    Lodging
      Royalties and Franchise Fees    $63    $78    $89    $67      $296
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)    60     73     84     64       281
      Property Management
       Reimbursable Revenues (b)       16     22     26     28        92
      Ancillary Revenues (c)           13     13     12     17        56
                                       --     --     --     --        --
      Total Lodging                   152    186    211    176       725
                                      ---    ---    ---    ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues               135    116    116    112       479
      Rental Revenues                 139    136    182    125       582
      Ancillary Revenues (d)           40     36     38     43       157
                                       --     --     --     --       ---
      Total Vacation Exchange and
       Rentals                        314    288    336    280     1,218
                                      ---    ---    ---    ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                          373    443    467    383     1,666
      Consumer Financing               81     88     93     96       358
      Property Management Fees         74     78     79     78       310
      Ancillary Revenues (e)           21     20     32     19        91
                                       --     --     --     --        --
      Total Vacation Ownership        549    629    671    576     2,425
                                      ---    ---    ---    ---     -----
    Total Reportable Segments      $1,015 $1,103 $1,218 $1,032    $4,368
                                   ====== ====== ====== ======    ======


                                                    2006
                                                    ----
                                     Q1     Q2     Q3     Q4      Year
                                   ------ ------ ------ ------  --------
    Lodging
      Royalties and Franchise Fees    $59    $75    $81    $63      $278
      Marketing, Reservation and
       Wyndham Rewards Revenues (a)    58     70     78     60       266
      Property Management
       Reimbursable Revenues (b)       16     20     17     16        69
      Ancillary Revenues (c)           11     11     13     13        48
                                       --     --     --     --        --
      Total Lodging                   144    176    189    152       661
                                      ---    ---    ---    ---       ---

    Vacation Exchange and Rentals
      Exchange Revenues               125    108    112    110       455
      Rental Revenues                 120    116    158    105       498
      Ancillary Revenues (d)           37     37     40     51       166
                                       --     --     --     --       ---
      Total Vacation Exchange and
       Rentals                        282    261    310    266     1,119
                                      ---    ---    ---    ---     -----

    Vacation Ownership
      Vacation Ownership Interest
       Sales                          309    377    396    379     1,461
      Consumer Financing               65     70     77     79       291
      Property Management Fees         58     60     66     68       253
      Ancillary Revenues (e)           13     11     12     28        63
                                       --     --     --     --        --
      Total Vacation Ownership        445    518    551    554     2,068
                                      ---    ---    ---    ---     -----
    Total Reportable Segments        $871   $955 $1,050   $972    $3,848
                                     ====   ==== ======   ====    ======
    ----------
    Note: Full year amounts may not foot across due to rounding.
    (a)  Marketing and reservation revenues represent fees we receive
         from franchised and managed hotels that are to be expended for
         marketing purposes or the operation of a centralized, brand-
         specific reservation system.  These fees are typically based on a
         percentage of the gross room revenues of each hotel.  Wyndham
         Rewards revenues represent fees we receive relating to our loyalty
         program.
    (b)  Primarily represents payroll costs in our hotel management
         business that we incur and pay on behalf of property owners and for
         which we are reimbursed by the property owners.
    (c)  Primarily includes additional services provided to
         franchisees.
    (d)  Primarily includes fees from additional services provided to
         transacting members, fees from a credit card loyalty program and
         fees generated from programs with affiliated resorts.
    (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 businesses.



                                                                      Table 5
                          Wyndham Worldwide Corporation
                                 SCHEDULE OF DEBT
                                  (In millions)


                   December 31, September 30, June 30, March 31, December 31,
                        2009         2009       2009      2009        2008
                   ------------ ------------- -------- --------- ------------

    Securitized
     vacation
     ownership debt
      Term notes         $1,112        $1,305   $1,290    $1,165       $1,252
      Bank conduit
       facilities (a)       395           299      340       569          558
                            ---           ---      ---       ---          ---
    Securitized
     vacation
     ownership debt (b)   1,507         1,604    1,630     1,734        1,810
    Less: Current
     portion of
     securitized
     vacation
     ownership debt         209           291      288       305          294
                            ---           ---      ---       ---          ---
    Long-term
     securitized
     vacation
     ownership debt      $1,298        $1,313   $1,342    $1,429       $1,516
                         ======        ======   ======    ======       ======

    Debt:
      6.00% senior
       unsecured notes
       (due December
       2016) (c)           $797          $797     $797      $797         $797
      Term loan
       (due July 2011)      300           300      300       300          300
      Revolving credit
       facility (due
       July 2011) (d)         -            21       30       517          576
      9.875% senior
       unsecured
       notes (due
       May 2014) (e)        238           237      237         -            -
      3.50% convertible
       notes (due
       May 2012) (f)        367           309      253         -            -
      Vacation ownership
       bank borrowings (g)  153           163      154       156          159
      Vacation rentals
       capital leases       133           139      135       130          139
      Other                  27            23       22        13           13
                             --            --       --        --           --
    Total debt            2,015         1,989    1,928     1,913        1,984
    Less: Current
     portion of debt        175           176      169       166          169
                            ---           ---      ---       ---          ---
    Long-term debt       $1,840        $1,813   $1,759    $1,747       $1,815
                         ======        ======   ======    ======       ======
    -----------
    (a)  Represents (i) a 364-day, non-recourse vacation ownership bank
         conduit facility with a term through October 2010 and borrowing
         capacity of $600 million and (ii) the outstanding balance of the
         Company's prior bank conduit facility through October 8, 2009, the
         date on which such balance was repaid.  At December 31, 2009, our
         364-day facility has remaining borrowing capacity of $205 million.
    (b)  This debt is collateralized by $2,755 million, $2,947 million, $2,916
         million, $3,005 million and $2,929 million of underlying vacation
         ownership contract receivables and related assets at December 31,
         2009, September 30, 2009, June 30, 2009, March 31, 2009 and December
         31, 2008, respectively.
    (c)  The balance at December 31, 2009 represents $800 million aggregate
         principal less $3 million of unamortized discount.
    (d)  The Company's revolving credit facility has a borrowing capacity of
         $900 million.  At December 31, 2009, the Company has $31 million of
         outstanding letters of credit and a remaining borrowing capacity of
         $869 million.
    (e)  Represents senior unsecured notes issued by the Company during May
         2009.  The balance at December 31, 2009 represents $250 million
         aggregate principal less $12 million of unamortized discount.
    (f)  Represents cash convertible notes issued by the Company during May
         2009.  At December 31, 2009, such balance includes $191 million of
         debt ($230 million aggregate principal less $39 million of
         unamortized discount) and a liability with a fair value of $176
         million related to a bifurcated conversion feature.
    (g)  Represents a 364-day, AUD 213 million, secured, revolving foreign
         credit facility, which expires in June 2010.



                                                                      Table 6
                                                                     (1 of 2)
                         Wyndham Worldwide Corporation
                          HOTEL BRAND SYSTEMS DETAILS


                       As of and For the Three Months Ended December 31, 2009
                       ------------------------------------------------------
                                                                   Average
                                                                    Revenue
                                                         Average      Per
                                               Average    Daily    Available
                        Number of  Number of  Occupancy    Rate      Room
         Brand          Properties   Rooms      Rate      (ADR)    (RevPAR)
         -----         ----------- --------- ----------  -------  ----------

    Wyndham Hotels
     and Resorts             94      24,517    50.5%    $108.64      $54.83

    Wingate by
     Wyndham                166      15,239    49.3%     $78.41      $38.65

    Hawthorn Suites
     by Wyndham              89       8,238    46.7%     $76.24      $35.62

    Ramada                  910     118,880    43.8%     $75.97      $33.28

    Baymont                 240      20,459    40.2%     $58.50      $23.50

    Days Inn              1,858     149,633    39.0%     $58.96      $23.01

    Super 8               2,137     132,876    42.9%     $53.87      $23.11

    Howard Johnson          492      46,748    38.9%     $58.18      $22.65

    Travelodge              460      34,098    38.4%     $59.37      $22.77

    Microtel Inns
     & Suites               314      22,376    43.5%     $55.15      $23.97

    Knights Inn             343      21,061    33.7%     $40.24      $13.57

    Unmanaged,
     Affiliated and
     Managed,
     Non-Proprietary
     Hotels (*)              11       3,549      N/A        N/A         N/A

                          -----     -------
      Total               7,114     597,674     41.6%    $63.62      $26.47
                          =====     =======


                     As of and For the Three Months Ended December 31, 2008
                     ------------------------------------------------------
                                                                   Average
                                                                   Revenue
                                                         Average     Per
                                               Average    Daily    Available
                        Number of  Number of  Occupancy    Rate      Room
          Brand         Properties    Rooms      Rate     (ADR)    (RevPAR)
          -----        ----------- --------- ----------  -------  ----------

    Wyndham Hotels
     and Resorts             82      21,724      53.2%   $111.86    $59.49

    Wingate by
     Wyndham                164      15,051      51.5%    $90.77    $46.76

    Hawthorn Suites
     by Wyndham              90       8,423      53.1%    $86.20    $45.73

    Ramada                  897     114,986      48.1%    $79.31    $38.15

    Baymont                 227      19,090      45.4%    $64.60    $29.35

    Days Inn              1,880     152,971      43.4%    $60.17    $26.09

    Super 8               2,110     130,920      47.2%    $55.82    $26.37

    Howard Johnson          482      47,177      41.9%    $60.04    $25.16

    Travelodge              479      36,154      41.2%    $57.40    $23.63

    Microtel Inns
     & Suites               308      22,106      51.4%    $56.88    $29.22

    Knights Inn             301      19,542      36.9%    $42.39    $15.65

    Unmanaged,
     Affiliated and
     Managed,
     Non-Proprietary
     Hotels (*)              23       4,736       N/A        N/A       N/A

                          -----     -------
      Total               7,043     592,880      45.7%    $65.68    $30.03
                          =====     =======
    ----------
    NOTE: A glossary of terms is included in Table 3 (3 of 3).
    (*)  Represents (i) affiliated properties for which we receive a fee for
         reservation services provided and (ii) properties managed under a
         joint venture.  These properties are not branded; as such, certain
         operating statistics (such as average occupancy rate, ADR and RevPAR)
         are not relevant.  December 31, 2008 amounts also include AmeriHost
         branded properties.



                                                                      Table 6
                                                                      (2 of 2)
                                  Wyndham Worldwide Corporation
                                   HOTEL BRAND SYSTEMS DETAILS


                      As of and For the Twelve Months Ended December 31, 2009
                      -------------------------------------------------------
                                                                      Average
                                                                      Revenue
                                                          Average       Per
                                                Average    Daily     Available
                        Number of   Number of  Occupancy    Rate        Room
         Brand          Properties    Rooms       Rate     (ADR)      (RevPAR)
         -----         -----------  --------- ----------  -------   ----------

    Wyndham Hotels
     and Resorts              94     24,517       52.6%    $114.56     $60.21

    Wingate by
     Wyndham                 166     15,239       53.6%     $83.16     $44.54

    Hawthorn
     Suites by
     Wyndham                  89      8,238       51.6%     $83.55     $43.10

    Ramada                   910    118,880       47.0%     $74.55     $35.04

    Baymont                  240     20,459       45.2%     $62.46     $28.25

    Days Inn               1,858    149,633       44.9%     $62.24     $27.95

    Super 8                2,137    132,876       48.5%     $56.67     $27.48

    Howard Johnson           492     46,748       42.2%     $61.22     $25.86

    Travelodge               460     34,098       43.4%     $61.87     $26.85

    Microtel Inns &
     Suites                  314     22,376       49.0%     $56.72     $27.79

    Knights Inn              343     21,061       37.2%     $42.46     $15.79

    Unmanaged,
     Affiliated
     and Managed,
     Non-Proprietary
     Hotels (*)               11      3,549        N/A         N/A        N/A

                           -----    -------
      Total                7,114    597,674       46.3%     $65.52     $30.34
                           =====    =======


                      As of and For the Twelve Months Ended December 31, 2008
                      -------------------------------------------------------
                                                                      Average
                                                                      Revenue
                                                          Average       Per
                                                Average    Daily     Available
                        Number of   Number of  Occupancy    Rate        Room
          Brand         Properties    Rooms       Rate     (ADR)      (RevPAR)
          -----        -----------  --------- ----------  -------   ----------

    Wyndham Hotels
     and Resorts             82     21,724       61.0%     $120.79     $73.67

    Wingate by
    Wyndham                 164     15,051       59.5%      $92.29     $54.94

    Hawthorn
     Suites by
     Wyndham                 90      8,423       57.7%      $88.57     $51.14

    Ramada                  897    114,986       52.6%      $81.62     $42.94

    Baymont                 227     19,090       49.7%      $65.96     $32.80

    Days Inn              1,880    152,971       49.9%      $64.57     $32.19

    Super 8               2,110    130,920       53.8%      $59.38     $31.95

    Howard Johnson          482     47,177       46.9%      $64.62     $30.28

    Travelodge              479     36,154       48.3%      $67.50     $32.64

    Microtel Inns &
     Suites                 308     22,106       54.3%      $60.00     $32.55

    Knights Inn             301     19,542       41.0%      $43.40     $17.80

    Unmanaged,
     Affiliated
     and Managed,
     Non-Proprietary
    Hotels (*)               23      4,736        N/A         N/A         N/A

                          -----    -------
      Total               7,043    592,880       51.4%      $69.52     $35.74
                          =====    =======
    ----------
    NOTE: A glossary of terms is included in Table 3 (3 of 3).
    (*)  Represents (i) affiliated properties for which we receive a fee for
         reservation services provided and (ii) properties managed under a
         joint venture.  These properties are not branded; as such, certain
         operating statistics (such as average occupancy rate, ADR and RevPAR)
         are not relevant.  December 31, 2008 amounts also include AmeriHost
         branded properties.



                                                                      Table 7
                                                                      (1 of 2)
                          Wyndham Worldwide Corporation
                             NON-GAAP RECONCILIATIONS
                       (In millions, except per share data)

                                                              Twelve Months
                                Three Months Ended                Ended
                                ------------------           --------------
                         March    June  September   December     December
                           31,     30,      30,        31,          31,
                          2009    2009     2009       2009         2009
                         ------  -----  ---------  ---------     ---------

    Reported EBITDA        $134   $196       $254       $194         $778
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (a)             4      -          2          -            6
      Restructuring
       costs (b)             43      3          -          -           46
                             --      -          -          -           --

    Adjusted EBITDA        $181   $199       $256       $194         $830
    ---------------        ----   ----       ----       ----         ----

    Reported PreTax
     Income                 $74   $127       $175       $117         $493
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (a)             4      -          2          -            6
      Restructuring
       costs (b)             43      3          -          -           46
                             --      -          -          -           --

    Adjusted PreTax
     Income                $121   $130       $177       $117         $545
    ---------------        ----   ----       ----       ----         ----

    Reported Tax
     Provision             $(29)  $(56)      $(71)      $(44)       $(200)
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (c)            (2)     2          -          -            -
      Restructuring
       costs (c)            (16)    (1)         -          -          (18)
                            ---     --          -          -          ---

    Adjusted Tax
     Provision             $(47)  $(55)      $(71)      $(44)       $(218)
    ------------           ----   ----       ----       ----        -----

    Reported Net Income     $45    $71       $104        $73         $293
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets                 2      2          2          -            6
      Restructuring
       costs                 27      2          -          -           28
                             --      -          -          -           --

    Adjusted Net Income     $74    $75       $106        $73         $327
    -------------------     ---    ---       ----        ---         ----

    Reported Diluted EPS  $0.25  $0.39      $0.57      $0.40        $1.61
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets              0.01   0.01       0.01          -         0.03
      Restructuring
       costs               0.15   0.01          -          -         0.16
                           ----   ----       ----       ----         ----

    Adjusted Diluted EPS  $0.41  $0.41      $0.58      $0.40        $1.80
    --------------------  -----  -----      -----      -----        -----

    Diluted Shares          178    182        183        184          182

    ----------
    Note: Amounts may not foot across due to rounding.
    (a)  Relates to the net expense from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (c)  Relates to the tax effect of the adjustments.



                                                                     Table 7
                                                                     (2 of 2)
                          Wyndham Worldwide Corporation
                             NON-GAAP RECONCILIATIONS
                       (In millions, except per share data)

                                                              Twelve Months
                                  Three Months Ended              Ended
                                  ------------------          --------------
                         March  June   September   December     December
                          31,    30,       30,        31,          31,
                         2008   2008      2008       2008         2008
                         -----  -----  ----------  ---------    ---------

    Reported EBITDA       $130   $221        $294    $(1,280)       $(635)
      Goodwill
       impairment (a)        -      -           -      1,342        1,342
      Other impairments
       (b)                  28      -           -         56           84
      Foreign currency
       losses (c)            -      -           -         24           24
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (d)            3     (7)          1        (14)         (18)
      Restructuring
       costs (e)             -      -           6         73           79
                             -      -           -         --           --

    Adjusted EBITDA       $161   $214        $301       $201         $876
    ---------------       ----   ----        ----       ----         ----

    Reported PreTax
     Income/(Loss)         $70   $160        $228    $(1,345)      $(887)
      Goodwill
       impairment (a)        -      -           -      1,342       1,342
      Other impairments
       (b)                  28      -           -         56          84
      Foreign currency
       losses (c)            -      -           -         24          24
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (d)            3     (7)          1        (14)        (18)
      Restructuring
       costs (e)             -      -           6         73          79
                             -      -           -         --          --

    Adjusted PreTax
     Income               $101   $153        $235       $136        $624
    ---------------       ----   ----        ----       ----        ----

    Reported Tax
     Provision            $(28)  $(62)       $(86)      $(11)      $(187)
      Goodwill
       impairment (f)        -      -           -         (5)         (5)
      Other impairments
       (f)                 (11)     -           -        (15)        (26)
      Foreign currency
       losses (f)            -      -           -          -           -
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets (f)            -      3           1          7          12
      Restructuring
       costs (f)             -      -          (2)       (28)        (30)
                             -      -          --        ---         ---

    Adjusted Tax
     Provision            $(39)  $(59)       $(87)      $(52)      $(236)
    ------------          ----   ----        ----       ----       -----

    Reported Net Income/
     (Loss)                $42    $98        $142    $(1,356)    $(1,074)
      Goodwill
       impairment            -      -           -      1,337       1,337
      Other impairments     17      -           -         41          58
      Foreign currency
       losses                -      -           -         24          24
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets                3     (4)          2         (7)         (6)
      Restructuring
       costs                 -      -           4         45          49
                             -      -           -         --          --

    Adjusted Net Income    $62    $94        $148        $84        $388
    -------------------    ---    ---        ----        ---        ----

    Reported Diluted EPS $0.24  $0.55       $0.80     $(7.63)     $(6.05)
      Goodwill
       impairment            -      -           -       7.52        7.51
      Other impairments   0.10      -           -       0.23        0.32
      Foreign currency
       losses                -      -           -       0.14        0.14
      Resolution of and
       adjustment to
       contingent
       liabilities and
       assets             0.01  (0.02)       0.01      (0.04)      (0.03)
      Restructuring
       costs                 -      -        0.02       0.25        0.28
                             -      -        ----       ----        ----

    Adjusted Diluted EPS $0.35  $0.53       $0.83      $0.47       $2.18
    -------------------- -----  -----       -----      -----       -----

    Diluted Shares         178    178         178        178         178

    ----------
    Note: Amounts may not foot due to rounding.
    (a)  Represents a non-cash goodwill impairment charge for Vacation
         Ownership to reflect reduced future cash flow estimates.
    (b)  During the three months ended March 31, 2008, represents a non-cash
         impairment charge of $28 million ($17 million, net of tax) for
         Vacation Ownership due to the Company's initiative to rebrand its
         vacation ownership trademarks to the Wyndham brand.  During the three
         months ended December 31, 2008, represents (i) non-cash impairment
         charges of $36 million ($28 million, net of tax) for Vacation
         Exchange and Rentals due to trademark and fixed asset write downs
         related to the Company's vacation rentals businesses and the write-
         off of the Company's investment in a joint venture, (iii) a non-cash
         impairment charge of $16 million ($10 million, net of tax) for
         Lodging related to the write down of franchise agreements of one of
         the Company's brands and (iv) a non-cash impairment charge of $4
         million ($3 million, net of tax) for Vacation Ownership related to
         the termination of a development project.
    (c)  Represents a cash charge for Vacation Exchange and Rentals due to
         foreign currency losses.
    (d)  Relates to the net (benefit)/expense from the resolution of and
         adjustment to certain contingent liabilities and assets.
    (e)  Relates to costs incurred as a result of various strategic
         initiatives approved by the Company and commenced during the third
         quarter of 2008.
    (f)  Relates to the tax effect of the adjustments.



                                                                    Table 8
                                                                    (1 of 3)

                          Wyndham Worldwide Corporation
                         NON-GAAP FINANCIAL INFORMATION
                      (In millions, except per share data)

                               Twelve Months Ended December 31, 2009
                               -------------------------------------

                            As       Legacy       Restructuring      As
                        Reported   Adjustments        Costs       Adjusted
                        --------   -----------    --------------  --------
    Net revenues
      Service fees and
       membership          $1,613                                    $1,613
      Vacation
       ownership
       interest sales       1,053                                     1,053
      Franchise fees          440                                       440
      Consumer
       financing              435                                       435
      Other                   209                                       209
                              ---       -               -               ---
    Net revenues            3,750       -               -             3,750
                            -----       -               -             -----

    Expenses
      Operating             1,501                                     1,501
      Cost of vacation
       ownership
       interests              183                                       183
      Consumer
       financing
       interest               139                                       139
      Marketing and
       reservation            560                                       560
      General and
       administrative         533      (6)  (a)                         527
      Goodwill and other
       impairments             15                                        15
      Restructuring
       costs                   47                     (46)  (b)           1
      Depreciation and
       amortization           178                                       178
                              ---     ---             ---               ---
    Total expenses          3,156      (6)            (46)            3,104
                            -----     ---             ---             -----

    Operating income          594       6              46               646
    Other income, net          (6)                                       (6)
    Interest expense          114                                       114
    Interest income            (7)                                       (7)
                              ---                                        --

    Income before
     income taxes             493       6              46               545
    Provision for
     income taxes             200       -   (c)        18   (c)         218
                              ---     ---            ----               ---

    Net income               $293      $6             $28              $327
                             ====      ==             ===              ====

    Earnings per share
      Basic                 $1.64   $0.03           $0.16             $1.83
      Diluted                1.61    0.03            0.16              1.80

    Weighted average shares
     outstanding
      Basic                   179     179             179               179
      Diluted                 182     182             182               182

    ----------
    (a)  Relates to the net expense from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (b)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (c)  Relates to the tax effect of the adjustments.



                                                                      Table 8
                                                                      (2 of 3)

                            Wyndham Worldwide Corporation
                            NON-GAAP FINANCIAL INFORMATION
                         (In millions, except per share data)

                                  Three Months Ended December 31, 2008
                                  ------------------------------------


                                                                   Foreign
                           As        Goodwill         Other        Currency
                        Reported    Impairment     Impairments      Losses
                        --------    ----------     -----------     --------
    Net revenues
      Service fees
       and membership       $360
      Vacation ownership
       interest sales        309
      Franchise fees         113
      Consumer financing     112
      Other                   17
                              --       -              -              -
    Net revenues             911       -              -              -
                             ---       -              -              -

    Expenses
      Operating              337
      Cost of vacation
       ownership interests    52
      Consumer financing
       interest               37
      Marketing and
       reservation           171
      General and
       administrative        124                                   (24)   (c)
      Goodwill and other
       impairments         1,398  (1,342)   (a)     (56)   (b)
      Restructuring costs     73
      Depreciation and
       amortization           47
                              --  ------            ---            ---
    Total expenses         2,239  (1,342)           (56)           (24)
                           -----  ------            ---            ---

    Operating income/
     (loss)               (1,328)  1,342             56             24
    Other income, net         (1)
    Interest expense          22
    Interest income           (4)
                              --      --             --             --

    Income/(loss)
     before income
     taxes                (1,345)  1,342             56             24
    Provision for
     income taxes             11       5    (f)      15    (f)       -    (f)
                              --       -             --              -

    Net income/(loss)    $(1,356) $1,337            $41            $24
                         =======  ======            ===            ===

    Earnings/(losses)
     per share            $(7.63)  $7.52          $0.23          $0.14

    Weighted average
     shares outstanding      178     178            178            178




                               Three Months Ended December 31, 2008
                               ------------------------------------


                             Legacy       Restructuring         As
                           Adjustments        Costs          Adjusted
                           -----------    -------------      --------
    Net revenues
      Service fees and
       membership                                                $360
      Vacation ownership
       interest sales                                             309
      Franchise fees                                              113
      Consumer financing                                          112
      Other                                                        17
                                 -               -                 --
    Net revenues                 -               -                911
                                 -               -                ---

    Expenses
      Operating                                                   337
      Cost of vacation
       ownership interests                                         52
      Consumer financing
       interest                                                    37
      Marketing and
       reservation                                                171
      General and
       administrative           14    (d)                         114
      Goodwill and other
       impairments                                                  -
      Restructuring costs                      (73)   (e)           -
      Depreciation and
       amortization                                                47
                                --             ---                 --
    Total expenses              14             (73)               758
                                --             ---                ---

    Operating income/(loss)    (14)             73                153
    Other income, net                                              (1)
    Interest expense                                               22
    Interest income                                                (4)
                                --              --                 --

    Income/(loss) before
     income taxes              (14)             73                136
    Provision for
     income taxes               (7)   (f)       28    (f)          52
                                --              --                 --

    Net income/(loss)          $(7)            $45                $84
                               ===             ===                ===

    Earnings/(losses)
     per share              $(0.04)          $0.25              $0.47

    Weighted average
     shares outstanding        178             178                178

    ----------
    (a)  Represents a non-cash goodwill impairment charge for Vacation
         Ownership to reflect reduced future cash flow estimates.
    (b)  Represents (i) non-cash impairment charges of $36 million ($28
         million, net of tax) for Vacation Exchange and Rentals due to
         trademark and fixed asset write downs related to the Company's
         vacation rentals businesses and the write-off of the Company's
         investment in a joint venture, (ii) a non-cash impairment charge of
         $16 million ($10 million, net of tax) for Lodging related to the
         write down of franchise agreements of one of the Company's brands and
         (iii) a non-cash impairment charge of $4 million ($3 million, net of
         tax) for Vacation Ownership related to the termination of a
         development project.
    (c)  Represents a cash charge for Vacation Exchange and Rentals due to
         foreign currency losses.
    (d)  Relates to the net benefit from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (e)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (f)  Relates to the tax effect of the adjustment.



                                                                      Table 8
                                                                      (3 of 3)

                                     Wyndham Worldwide Corporation
                                    NON-GAAP FINANCIAL INFORMATION
                                 (In millions, except per share data)

                                      Twelve Months Ended December 31, 2008
                                      -------------------------------------


                                                                  Foreign
                                As    Goodwill        Other      Currency
                           Reported  Impairment    Impairments    Losses
                           --------  ----------    -----------   --------
    Net revenues
      Service fees and
       membership           $1,705
      Vacation ownership
       interest sales        1,463
      Franchise fees           514
      Consumer financing       426
      Other                    173
                               ---        -              -           -
    Net revenues             4,281        -              -           -
                             -----        -              -           -

    Expenses
      Operating              1,622
      Cost of vacation
       ownership interests     278
      Consumer financing
       interest                131
      Marketing and
       reservation             830
      General and
       administrative          561                                  (24)   (c)
      Goodwill and
       other impairments     1,426   (1,342)   (a)     (84)   (b)
      Restructuring costs       79
      Depreciation and
       amortization            184
                               ---   ------            ---          ---
    Total expenses           5,111   (1,342)           (84)         (24)
                             -----   ------            ---          ---

    Operating income/
     (loss)                   (830)   1,342             84           24
    Other income, net          (11)
    Interest expense            80
    Interest income            (12)
                               ---      ---            ---          ---

    Income/(loss)
     before income taxes      (887)    1,342            84           24
    Provision for income
     taxes                     187         5    (f)     26    (f)     -    (f)
                               ---         -            --            -

    Net income/ (loss)     $(1,074)   $1,337           $58          $24
                           =======    ======           ===          ===

    Earnings/(losses)
     per share
      Basic                 $(6.05)    $7.53         $0.33        $0.14
      Diluted                (6.05)     7.51          0.32         0.14

    Weighted average
     shares outstanding
      Basic                    178       178           178          178
      Diluted                  178       178           178          178



                              Twelve Months Ended December 31, 2008
                              -------------------------------------


                            Legacy             Restructuring         As
                          Adjustments              Costs          Adjusted
                          -----------          -------------      --------
    Net revenues
      Service fees and
       membership                                                   $1,705
      Vacation ownership
       interest sales                                                1,463
      Franchise fees                                                   514
      Consumer financing                                               426
      Other                                                            173
                                -                      -               ---
    Net revenues                -                      -             4,281
                                -                      -             -----

    Expenses
      Operating                                                      1,622
      Cost of vacation
       ownership interests                                             278
      Consumer financing
       interest                                                        131
      Marketing and
       reservation                                                     830
      General and
       administrative          18    (d)                               555
      Goodwill and
       other impairments                                                 -
      Restructuring costs                            (79)   (e)          -
      Depreciation and
       amortization                                                    184
                               --                    ---               ---
    Total expenses             18                    (79)            3,600
                               --                    ---             -----

    Operating income/
     (loss)                   (18)                    79               681
    Other income, net                                                  (11)
    Interest expense                                                    80
    Interest income                                                    (12)
                              ---                    ---               ---

    Income/(loss) before
     income taxes             (18)                    79               624
    Provision for income
     taxes                    (12)   (f)              30    (f)        236
                              ---                     --               ---

    Net income/(loss)         $(6)                   $49              $388
                              ===                    ===              ====

    Earnings/(losses)
     per share
      Basic                $(0.03)                 $0.28             $2.19
      Diluted               (0.03)                  0.28              2.18

    Weighted average
     shares outstanding
      Basic                   178                    178               178
      Diluted                 178                    178               178

    -----------
    Note: EPS amounts may not foot across due to rounding.
    (a)  Represents a non-cash goodwill impairment charge for Vacation
         Ownership to reflect reduced future cash flow estimates.
    (b)  Represents (i) non-cash impairment charges of $36 million ($28
         million, net of tax) for Vacation Exchange and Rentals due to
         trademark and fixed asset write downs related to the Company's
         vacation rentals businesses and the write-off of the Company's
         investment in a joint venture, (ii) a non-cash impairment charge of
         $28 million ($17 million, net of tax) for Vacation Ownership due to
         the Company's initiative to rebrand its vacation ownership trademarks
         to the Wyndham brand, (iii) a non-cash impairment charge of $16
         million ($10 million, net of tax) for Lodging related to the write
         down of franchise agreements of one of the Company's brands and (iv)
         a non-cash impairment charge of $4 million ($3 million, net of tax)
         for Vacation Ownership related to the termination of a development
         project.
    (c)  Represents a cash charge for Vacation Exchange and Rentals due to
         foreign currency losses.
    (d)  Relates to the net benefit from the resolution of and adjustment to
         certain contingent liabilities and assets.
    (e)  Relates to costs incurred as a result of various strategic
         initiatives commenced by the Company during 2008.
    (f)  Relates to the tax effect of the adjustments.


SOURCE Wyndham Worldwide Corporation