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Wyndham Worldwide Reports Third Quarter 2017 Results
Record Revenues Helped Drive EPS Growth
Company Adds $1.0 Billion to its Share Repurchase Authorization

PARSIPPANY, N.J., Oct. 25, 2017 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended September 30, 2017.  The Company's results were in line with its prior expectations despite recent hurricanes negatively impacting the Company's operations.

THIRD QUARTER 2017 OPERATING RESULTS
Third quarter revenues were $1.6 billion, up 4% compared with the prior-year period. Full reconciliations of GAAP results to non-GAAP measures for all reported periods appear in the tables to this press release.

Net income in the third quarter of 2017 was $203 million compared with $196 million for the third quarter of 2016.  Diluted earnings per share (EPS) increased 11% to $1.97, versus $1.78 in the prior-year period.  

Adjusted net income for the third quarter of 2017 was $209 million or $2.03 per diluted share, compared with $207 million or $1.89 per diluted share in the third quarter of 2016.  Adjusted results exclude restructuring and separation costs and other items as detailed in Tables 7 and 8 of this press release.  Third quarter earnings benefited from the growth in revenues, partially offset by higher year-over-year interest, depreciation and variable compensation expenses along with the impact of Hurricanes Irma and Maria.  The increase in adjusted diluted EPS also reflects the benefit of the Company's share repurchase program.      

Third quarter EBITDA was $422 million, compared with $402 million in the prior-year period.  Adjusted EBITDA was $436 million, compared with $423 million in the third quarter of 2016.  Results primarily reflect the growth in revenues, partially offset by higher variable compensation expenses and the hurricane impacts.   

Weather events in the third quarter had an unusually pronounced effect on operating results.  In particular, the Company estimates that the third quarter hurricanes reduced revenues, net income and EBITDA by $13 million, $6 million, and $9 million, respectively.  The reductions primarily reflect the temporary closure of vacation ownership sales centers in the Caribbean and Florida, the closure of portions of the Company's Wyndham Rio Mar hotel in Puerto Rico, and reduced timeshare exchanges due to travel disruptions.  Two of the Company's vacation ownership sales centers in the Caribbean remain closed.

"Our team's sharp focus on executing against our strategic and operating plans allowed us to deliver solid growth in line with our prior projections," said Stephen P. Holmes, chairman and CEO.  "While the barrage of recent hurricanes negatively impacted our results, our efforts to drive revenue and control costs successfully mitigated their impact in the quarter.  I am especially proud of how our employees and affiliates in affected areas have served our guests throughout a difficult period.

"Despite the weather-related challenges in the quarter, we generated a strong increase in new timeshare owners and year-over-year growth in our earnings per share.  We have also strengthened our presence in the midscale hotel segment with the addition of the AmericInn brand and its 200 franchised hotels in October.  Furthermore, we have increased our share repurchase authorization to reflect our continued focus on returning cash to shareholders, and we are working tirelessly to execute our previously announced separation into two publicly-traded companies," Mr. Holmes added.

For the nine months ended September 30, 2017, net cash provided by operating activities was $666 million, compared with $786 million in the prior-year period. The decrease primarily reflects timing differences and additions to the Company's vacation ownership receivables portfolio.

Free cash flow was $541 million for the nine months ended September 30, 2017, compared with $650 million for the same period in 2016, primarily reflecting the changes in net cash provided by operating activities.  The Company defines free cash flow as net cash provided by operating activities less capital expenditures.

THIRD QUARTER 2017 BUSINESS UNIT RESULTS

Hotel Group
Revenues were $368 million in the third quarter of 2017, compared with $364 million in the third quarter of 2016.  Results reflect 9% higher royalties and franchise fees, as well as increased other revenue due to growth in the Wyndham Rewards credit card program.  In addition, results reflected the absence in 2017 of $13 million of global franchisee conference revenues, which are "pass-through" revenues that were fully offset by reduced expenses.

EBITDA was $121 million in the third quarter compared with $107 million in the prior-year quarter.  Adjusted EBITDA was $122 million compared with $117 million in the prior-year period, an increase of 4%, primarily reflecting the growth in revenues.  

Third quarter domestic same-store RevPAR increased 2.3% compared with third quarter 2016.  In constant currency, global same-store RevPAR increased 3.3%.

As of September 30, 2017, the Company's hotel system consisted of over 8,100 properties and over 708,500 rooms, a 3% increase compared with the third quarter of 2016.  The development pipeline increased to nearly 1,190 hotels and over 146,900 rooms, a 10% year-over-year room increase, of which 57% are international and 68% are new construction.  In addition, we are adding almost 12,000 rooms to our system with the acquisition of AmericInn that we completed in October.

Destination Network
Revenues were $511 million in the third quarter of 2017, compared with $486 million in the third quarter of 2016, an increase of 5%.  In constant currency and excluding acquisitions, revenues increased 2%. 

Vacation rental revenues were $327 million compared with $304 million in the prior-year quarter.  In constant currency and excluding acquisitions, vacation rental revenues increased 3%, reflecting a 2% increase in transaction volume and a 1% increase in the average net price per rental.   

Exchange revenues were $158 million, a decline of 1% compared with the prior-year quarter, reflecting the adverse impact of the hurricanes.  Exchange revenue per member increased 1% and the average number of members declined 2%.

EBITDA was $154 million in the third quarter of 2017, compared with $138 million in the third quarter of 2016.  Adjusted EBITDA was $150 million compared with $142 million in the prior-year quarter, an increase of 6%, reflecting increased vacation rental volumes and favorable foreign currency movements, partially offset by the adverse impact of the hurricanes.

Vacation Ownership
Revenues were $773 million in the third quarter of 2017, compared with $744 million in the third quarter of 2016, an increase of 4%.  The increase reflects a 7% increase in gross VOI sales as well as higher consumer financing revenues, even though the third quarter hurricanes negatively impacted VOI sales.

Tour flow increased 7%, driven by increased tours to new owners.  Volume per guest (VPG) declined 1%, primarily reflecting a 16% increase in sales in North America to new owners, which produce a lower VPG. 

EBITDA was $190 million in the third quarter of 2017 compared with $189 million in the prior-year quarter.  Adjusted EBITDA was $190 million compared with $195 million in the prior-year quarter, a decline of 3%.  Results reflect higher gross VOI sales and consumer financing revenue, offset by a higher provision for loan losses and increased variable compensation expenses.

OTHER ITEMS

  • The Company repurchased 1.5 million shares of common stock for $150 million during the third quarter of 2017 at an average price of $101.18.  From October 1 through October 24, 2017, the Company repurchased an additional 0.3 million shares for $34 million
  • The Company's Board of Directors approved a $1.0 billion increase in the share repurchase authorization.  Including the increase, the Company's remaining share repurchase authorization totals $1.3 billion as of October 24, 2017.
  • Net interest expense in the third quarter of 2017 was $40 million compared with $32 million in the third quarter of 2016, reflecting higher corporate debt levels.
  • Depreciation and amortization in the third quarter of 2017 was $69 million, compared with $63 million in the third quarter of 2016, as additional long-term capital projects came into service, strengthening the Company's technology capabilities.
  • As previously announced, the Company plans to become two publicly-traded hospitality companies through the spin-off of the Company's Hotel Group to shareholders.  The process is proceeding as planned, and the Company expects to complete the separation in the second quarter of 2018, although there can be no assurance regarding the timing of the separation or that the separation will ultimately occur.  The Company is also continuing to explore strategic alternatives for its European vacation rentals business.
  • The Company completed the acquisition of AmericInn on October 2, adding 200 franchised properties with nearly 12,000 rooms to the Company's midscale hotel portfolio.  The net purchase price was $142 million, which included a simultaneous sale of ten owned hotels to an unrelated third party for $28 million.

Balance Sheet Information as of September 30, 2017:

  • Cash and cash equivalents were $289 million, compared with $185 million at December 31, 2016.
  • Vacation ownership contract receivables, net totaled $2.9 billion, compared with $2.8 billion at December 31, 2016.
  • Vacation ownership and other inventory was $1.3 billion, compared with $1.4 billion at December 31, 2016.
  • Securitized vacation ownership debt was $2.0 billion, compared with $2.1 billion at December 31, 2016.
  • Long-term debt totaled $3.9 billion, compared with $3.4 billion at December 31, 2016. The increase in debt reflects higher vacation ownership contract receivables, higher VOI inventory, lower securitized borrowings and an increase in the Company's cash balance. The remaining borrowing capacity under the Company's revolving credit facility, net of commercial paper borrowings, was $0.9 billion as of September 30, 2017, compared with $1.1 billion at December 31, 2016.

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

OUTLOOK

Note to Editors: The outlook below excludes possible future share repurchases, while analysts' estimates often include projected share repurchases. This results in discrepancies between the Company's projections and database consensus forecasts.

The Company has updated the following projections for the full year 2017 to reflect the financial effects of the recent weather events on both our third quarter and fourth quarter results:

  • Revenues of $5.80 billion to $5.85 billion.
  • Adjusted net income of $618 million to $628 million.
  • Adjusted EBITDA of $1.380 billion to $1.395 billion.
  • Adjusted diluted EPS to $5.95 to $6.05, based on a diluted share count of 103.9 million.

The third quarter weather events will affect the Company's fourth quarter results, particularly in its Vacation Ownership and Hotel Group segments.  The Company estimates the weather events will reduce fourth quarter revenues by $20 to $30 million, net income by $9 to $15 million, and EBITDA by $15 to $23 million.  For the full year, the Company estimates the weather events will reduce revenues by $33 to $43 million, net income by $15 to $21 million and EBITDA by $24 to $32 million.  While the Company's business interruption insurance may ultimately offset a portion of these effects, any such insurance recoveries are unlikely to be realized in 2017.

In determining adjusted net income, adjusted EBITDA and adjusted EPS, the Company excludes certain items which are otherwise included in determining the comparable GAAP financial measures. A description of the adjustments that have been applicable for the reported periods in determining adjusted net income, adjusted EBITDA and adjusted EPS are reflected in Tables 7 and 8 of this press release. The Company is providing an outlook for net income, EBITDA and EPS only on a non-GAAP basis because the Company is unable to predict with reasonable certainty the totality or ultimate outcome or occurrence of these adjustments or other potential adjustments that may arise in the future during the outlook period, which can be dependent on future events that may not be reliably predicted. See Table 10 for certain non-GAAP information concerning the outlook period.

The Company will post more detailed projections on its website following the conference call.

CONFERENCE CALL INFORMATION
Wyndham Worldwide Corporation will hold a conference call with investors to discuss the Company's results and outlook on Wednesday, October 25, 2017 at 8:30 a.m. ET. Listeners can access the webcast live through the Company's website at http://www.wyndhamworldwide.com/investors/.  The conference call may also be accessed by dialing 800-862-9098 and providing the passcode WYNDHAM.  Listeners are urged to call at least 10 minutes prior to the scheduled start time.  An archive of this webcast will be available on the website for approximately 90 days beginning at 12:00 p.m. ET on October 25, 2017.  A telephone replay will be available for approximately 10 days beginning at 12:00 p.m. ET on October 25, 2017 at 800-688-7036.

PRESENTATION OF FINANCIAL INFORMATION
Financial information discussed in this press release includes non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported GAAP results and are intended to illustrate what management believes are relevant period-over-period comparisons and are helpful to investors as an additional tool for further understanding and assessing the Company's ongoing operating performance.  Exclusion of items in the Company's non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring.  Full reconciliations of GAAP results to the comparable non-GAAP measures for the reported periods appear in the financial tables section of the press release.

ABOUT WYNDHAM WORLDWIDE
Wyndham Worldwide (NYSE: WYN) is one of the largest global hospitality companies, providing travelers with access to a collection of trusted hospitality brands in hotels, vacation ownership, and unique accommodations including vacation exchange, holiday parks, and managed home rentals. With a collective inventory of nearly 130,000 places to stay across more than 110 countries on six continents, Wyndham Worldwide and its 38,000 associates welcome people to experience travel the way they want. This is enhanced by Wyndham Rewards®, the Company's re-imagined guest loyalty program across its businesses, which is making it simpler for members to earn more rewards and redeem their points faster. For more information, please visit www.wyndhamworldwide.com.

FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are those that convey management's expectations as to the future based on plans, estimates and projections at the time Wyndham Worldwide makes the statements and may be identified by terminology such as "will," "expect," believe," "plan," "anticipate," "goal," "future," "outlook," guidance," "target," "estimate" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Wyndham Worldwide or the post-spin companies to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings, cash flow, related financial and operating measures and expectations with respect to the spin-off and related transactions, as well as the post-spin companies' future operating, financial and business performance.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war, terrorist activity or political strife, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, uncertainties that may delay or negatively impact the spin-off or cause the spin-off to not occur at all, uncertainties related to the post-spin companies' ability to realize the anticipated benefits of the spin-off, uncertainties related to Wyndham Worldwide's ability to successfully complete the spin-off on a tax-free basis within the expected time frame or at all, unanticipated developments that delay or otherwise negatively affect the spin-off, uncertainties related to Wyndham Worldwide's ability to obtain financing for the two companies or the terms of such financing,  unanticipated developments related to the impact of the spin-off on our relationships with our customers, suppliers, employees and others with whom we have relationships, unanticipated developments resulting from possible disruption to our operations resulting from the proposed spin-off, the potential impact of the spin-off and related transactions on Wyndham Worldwide's credit rating, uncertainties relating to Wyndham Worldwide's exploration of strategic alternatives for its European rentals brands and the outcome and timing of that process, the timing and amount of future share repurchases, as well as those factors described in Wyndham Worldwide's Annual Report on Form 10-K, filed with the SEC on February 17, 2017, and in Wyndham Worldwide's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Except for Wyndham Worldwide's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

 

 

Wyndham Worldwide Corporation

Earnings Release Schedules

Quarter Three - September 30, 2017

Table of Contents




Table No.



Consolidated Statements of Income (Unaudited)

1



Operating Results of Reportable Segments

2



Operating Statistics

3



Condensed Consolidated Statements of Cash Flows and Reconciliation of Free Cash Flows (Unaudited)

4



Revenue Detail by Reportable Segment

5



Brand System Details

6



Non-GAAP Reconciliation of Adjusted Net Income and EPS

7



Non-GAAP Reconciliation of Adjusted EBITDA by Reportable Segment

8



Non-GAAP Reconciliation of Gross VOI Sales

9



Non-GAAP Reconciliation of 2017 Outlook

10



Non-GAAP Reconciliation - Constant Currency, Currency Neutral and Acquisitions

11



Schedule of Debt

12

 

 















Table 1

Wyndham Worldwide Corporation

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)

(Unaudited)



































 Three Months Ended 


 Nine Months Ended 





 September 30, 


 September 30, 





2017


2016


2017


2016

Net revenues














Service and membership fees


$

754


$

735


$

2,043


$

2,001


Vacation ownership interest sales



467



441



1,265



1,191


Franchise fees



204



203



522



513


Consumer financing



119



112



343



327


Other




85



82



254



247

Net revenues



1,629



1,573



4,427



4,279
















Expenses















Operating



713



679



1,968



1,915


Cost of vacation ownership interests 



41



47



115



115


Consumer financing interest



17



19



54



55


Marketing and reservation



250



242



676



645


General and administrative



173



173



557



545


Separation and related costs



24



-



24



-


Asset impairments 



-



-



140



-


Restructuring



8



14



15



14


Depreciation and amortization



69



63



197



187

Total expenses



1,295



1,237



3,746



3,476
















Operating income



334



336



681



803

Other income, net



(19)



(3)



(24)



(19)

Interest expense



42



34



115



102

Early extinguishment of debt



-



-



-



11

Interest income



(2)



(2)



(6)



(6)
















Income before income taxes



313



307



596



715

Provision for income taxes



110



110



173



267

Net income




203



197



423



448

Net income attributable to noncontrolling interest



-



(1)



(1)



(1)

Net income attributable to Wyndham shareholders


$

203


$

196


$

422


$

447
















Earnings per share














Basic



$

1.98


$

1.79


$

4.07


$

4.03


Diluted



1.97



1.78



4.05



4.01
















Weighted average shares outstanding














Basic




102



109



104



111


Diluted



103



110



104



112

 

 














Table 2















(1 of 2)


Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)































In addition to other measures, management evaluates the operating results of each of its reportable segments based upon net revenues and "EBITDA", which is defined as net income before depreciation and amortization, interest expense (excluding consumer financing interest), early extinguishment of debt, interest income (excluding consumer financing revenues) and income taxes, each of which is presented on the Company's Consolidated Statements of Income.  The Company also uses adjusted EBITDA as a financial measure of its operating performance.  The Company believes that EBITDA and adjusted EBITDA are useful measures of assessing performance of the Company and for the Company's segments which, when considered with GAAP measures, give a more complete understanding of its operating performance and assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods, by adjusting for certain items which may be recurring or nonrecurring and which in our view do not necessarily reflect ongoing operating performance. We also internally use these measures to assess our operating performance, both in absolute terms and in comparison to other companies, and in evaluating or making selected compensation decisions.  These supplemental disclosures are in addition to GAAP reported measures.  The Company's presentation of EBITDA and adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.






















The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile Net income attributable to Wyndham shareholders to EBITDA for the three months ended September 30, 2017 and 2016:




















Three Months Ended September 30, 





2017


2016





 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Hotel Group

$

368


$

121


$

364


$

107


Destination Network


511



154



486



138


Vacation Ownership


773



190



744



189


     Total Reportable Segments


1,652



465



1,594



434


Corporate and Other (a)


(23)



(43)



(21)



(32)


     Total Company

$

1,629


$

422


$

1,573


$

402

















Reconciliation of Net income attributable to Wyndham shareholders to EBITDA

























 Three Months Ended September 30,  








2017





2016


Net income attributable to Wyndham shareholders




$

203





$

196


Net income attributable to noncontrolling interest





-






1


Provision for income taxes





110






110


Depreciation and amortization





69






63


Interest expense





42






34


Interest income





(2)






(2)


EBITDA





$

422





$

402
































Note: Amounts may not add due to rounding. 


(a) Includes the elimination of transactions between segments.  
































































Three Months Ended September 30, 





2017


2016





 Net Revenues 


 Adjusted 

EBITDA 


 Net Revenues 


Adjusted 
EBITDA 


Hotel Group

$

368


$

122


$

364


$

117


Destination Network


511



150



486



142


Vacation Ownership


773



190



744



195


     Total Reportable Segments


1,652



462



1,594



454


Corporate and Other (a)


(23)



(26)



(21)



(31)


     Total Company

$

1,629


$

436


$

1,573


$

423

















 

 













Table 2














(2 of 2)


Wyndham Worldwide Corporation


OPERATING RESULTS OF REPORTABLE SEGMENTS


(In millions)
































The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile net income attributable to Wyndham shareholders to EBITDA for the nine months ended September 30, 2017 and 2016:




















Nine Months Ended September 30, 





2017


2016





 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Hotel Group

$

1,011


$

312


$

993


$

291


Destination Network


1,308



345



1,255



303


Vacation Ownership


2,171



356



2,089



512


     Total Reportable Segments


4,490



1,013



4,337



1,106


Corporate and Other (a)


(63)



(111)



(58)



(97)


     Total Company

$

4,427


$

902


$

4,279


$

1,009

















Reconciliation of Net income attributable to Wyndham shareholders to EBITDA























Nine Months Ended September 30, 








2017





2016


Net income attributable to Wyndham shareholders




$

422





$

447


Net income attributable to noncontrolling interest





1






1


Provision for income taxes





173






267


Depreciation and amortization





197






187


Interest expense





115






102


Early extinguishment of debt





-






11


Interest income





(6)






(6)


EBITDA





$

902





$

1,009
































Note: Amounts may not add due to rounding. 


(a) Includes the elimination of transactions between segments.  





The following tables summarize net revenues and adjusted EBITDA for the Company's reportable segments for the nine months ended September 30, 2017 and 2016 (for a description of adjustments and reconciliation by segment, see Table 8):





















Nine Months Ended September 30, 





2017


2016





 Net Revenues 


Adjusted 

 EBITDA 


 Net Revenues 


 Adjusted
EBITDA 


Hotel Group



$

1,011


$

314


$

993


$

301


Destination Network


1,308



341



1,255



333


Vacation Ownership


2,171



497



2,089



518


     Total Reportable Segments


4,490



1,152



4,337



1,152


Corporate and Other (a)


(63)



(89)



(58)



(97)


     Total Company

$

4,427


$

1,063


$

4,279


$

1,055

















 

 

















Table 3

















(1 of 2)

Wyndham Worldwide Corporation

OPERATING STATISTICS


















The following operating statistics are the drivers of our revenues and therefore provide an enhanced understanding of our businesses:
























Year


Q1


Q2


Q3


Q4


Full Year

Hotel Group(a)













Number of Rooms 

2017


699,800


705,700


708,500


 N/A 


 N/A 



2016


679,100


683,300


689,800


697,600


 N/A 



2015


667,400


668,500


671,900


678,000


 N/A 



2014


646,900


650,200


655,300


660,800


 N/A 















RevPAR

2017

$

31.73

$

39.43

$

44.36

$

 N/A 

$

 N/A 



2016

$

31.59

$

39.10

$

43.04

$

32.92

$

36.67



2015

$

32.84

$

39.82

$

43.34

$

32.98

$

37.26



2014

$

32.30

$

40.11

$

43.71

$

34.06

$

37.57














Destination Network













Average Number of Members (in 000s) (a)

2017


3,817


3,791


3,792


 N/A 


 N/A 



2016


3,841


3,857


3,868


3,843


3,852



2015


3,822


3,831


3,835


3,836


3,831



2014


3,727


3,748


3,777


3,808


3,765















Exchange Revenue Per Member (a)

2017

$

192.01

$

168.27

$

166.35

$

 N/A 

$

 N/A 



2016

$

189.78

$

164.61

$

164.39

$

151.19

$

167.48



2015

$

194.06

$

167.81

$

163.38

$

152.00

$

169.29



2014

$

200.78

$

179.17

$

171.77

$

157.24

$

177.12















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

2017


538


461


529


 N/A 


 N/A 



2016


500


409


508


350


1,767



2015


459


390


462


319


1,630



2014


429


376


455


293


1,552















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

2017

$

343.07

$

476.72

$

618.39

$

 N/A 

$

 N/A 



2016

$

366.08

$

492.83

$

599.59

$

430.14

$

475.24



2015

$

361.20

$

513.14

$

642.00

$

452.19

$

494.92



2014

$

410.04

$

577.13

$

727.40

$

492.25

$

558.95














Vacation Ownership (a)













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

2017

$

439,000

$

563,000

$

602,000

$

 N/A 

$

 N/A 



2016

$

428,000

$

518,000

$

564,000

$

502,000

$

2,012,000



2015

$

390,000

$

502,000

$

565,000

$

507,000

$

1,965,000



2014

$

410,000

$

496,000

$

513,000

$

470,000

$

1,889,000















Tours (in 000s)

2017


176


235


247


 N/A 


 N/A 



2016


179


213


230


197


819



2015


168


206


227


200


801



2014


170


208


225


191


794















Volume Per Guest (VPG)

2017

$

2,354

$

2,302

$

2,299

$

 N/A 

$

 N/A 



2016

$

2,244

$

2,328

$

2,320

$

2,399

$

2,324



2015

$

2,177

$

2,353

$

2,354

$

2,390

$

2,326



2014

$

2,272

$

2,280

$

2,158

$

2,336

$

2,257


















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

(a)

Includes the impact of acquisitions/dispositions from the acquisition/disposition dates forward. 

(b)

The destination network operating statistics excluding our U.K.-based camping business sold in Q4 2014 are as follows:
























Year


Q1


Q2


Q3


Q4


Full Year


Vacation Rental Transactions (in 000s)

2014


429


367


431


292


1,518


Average Net Price Per Vacation Rental

2014

$

410.02

$

578.02

$

700.56

$

492.64

$

548.93



































(c)

Includes Gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) Just-in-Time. (See Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales).








































ADDITIONAL DATA
































Year


Q1


Q2


Q3


Q4


Full Year

Hotel Group













Number of Properties

2017


8,080


8,140


8,150


 N/A 


 N/A 



2016


7,830


7,880


7,930


8,040


 N/A 



2015


7,670


7,700


7,760


7,810


 N/A 



2014


7,500


7,540


7,590


7,650


 N/A 














Vacation Ownership













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

2017

$

85,000

$

110,000

$

123,000

$

 N/A 

$

 N/A 



2016

$

63,000

$

90,000

$

104,000

$

86,000

$

342,000



2015

$

46,000

$

60,000

$

78,000

$

64,000

$

248,000



2014

$

60,000

$

70,000

$

70,000

$

60,000

$

260,000


















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

(*)

Represents provision for estimated losses on vacation ownership contract receivables originated during the period, which is recorded as a contra revenue to vacation ownership interest sales on the Consolidated Statements of Income.


















 

 

















Table 3


















(2 of 2)




















Wyndham Worldwide Corporation


OPERATING STATISTICS




GLOSSARY OF TERMS




















Hotel Group




















Number of Rooms: Represents the number of rooms at hotel group properties at the end of the period which are either (i) under franchise and/or management agreements, or company owned and (ii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided. 





















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




















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




















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





















Destination Network




















Average Number of Members:  Represents members in our vacation exchange programs who paid annual membership dues as of the end of the period or who are within the allowed grace period. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with the Company's vacation exchange business. In addition, certain participants may exchange intervals for other leisure-related services and products.






















Exchange Revenue Per Member: Represents total annualized revenues generated from fees associated with memberships, exchange transactions, member-related rentals and other servicing for the period divided by the average number of vacation exchange members during the period. 





















Vacation Rental Transactions:  Represents the number of transactions that are generated in connection with customers booking their vacation rental stays through one of our vacation brands. One rental transaction is recorded for each standard one-week rental.





















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





















Vacation Ownership




















Gross Vacation Ownership Interest Sales: Represents sales of vacation ownership interest (VOIs), including WAAM sales, before the net effect of percentage-of-completion accounting and loan loss provisions. We believe gross VOI sales provide an enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period. See Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales.





















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




















Volume per Guest (VPG): Represents Gross VOI sales (excluding tele-sales upgrades, which are non-tour upgrade sales) divided by the number of tours.  The Company has excluded non-tour upgrade sales in the calculation of VPG because non-tour upgrade sales are generated by a different marketing channel.  See Table 9 for a detail of tele-sales upgrades for 2014-2017. 






















General




















Constant Currency: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation).




















Currency-Neutral: Represents a comparison eliminating the effects of foreign exchange rate fluctuations between periods (foreign currency translation) and the impact caused by any foreign exchange related activities (i.e., hedges, balance sheet remeasurements and/or adjustments).



 

 








Table 4

Wyndham Worldwide Corporation

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND RECONCILIATION OF FREE CASH FLOWS

(In millions)

(Unaudited)

















Condensed Consolidated Statements of Cash Flows:










Nine Months Ended September 30, 




2017


2016

Net cash provided by operating activities


$

666


$

786









Net cash used in investing activities



(171)



(172)









Net cash used in financing activities



(404)



(442)









Effect of changes in exchange rates on cash and cash equivalents



13



(11)









Net increase in cash and cash equivalents


$

104


$

161

















Free Cash Flow:
















We define free cash flow to be net cash provided by operating activities less property and equipment additions which we also refer to as capital expenditures.

We believe free cash flow to be a useful operating performance measure to evaluate the ability of our operations to generate cash for uses other than capital expenditures and, after debt service and other obligations, our ability to grow our business through acquisitions, development advances and equity investments, as well as our ability to return cash to shareholders through dividends and share repurchases. A limitation of using free cash flow versus the GAAP measures of net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities as a means for evaluating Wyndham Worldwide is that free cash flow does not represent the total cash movement for the period as detailed in the consolidated statement of cash flows.


The following table provides more details on the GAAP financial measure that is most directly comparable to the non-GAAP financial measure and the related reconciliation between these financial measures:





Nine Months Ended September 30, 




2017


2016

Net cash provided by operating activities


$

666


$

786

Less: Property and equipment additions



(125)



(136)

Free cash flow



$

541


$

650









 

 
























Table 5


























Wyndham Worldwide Corporation

REVENUE DETAIL BY REPORTABLE SEGMENT

(In millions)























































2017


2016






 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 

Hotel Group
























Royalties and Franchise Fees


$

79

$

98

$

114


 N/A 


 N/A 


$

74

$

94

$

105

$

94

$

367


Marketing, Reservation and Wyndham Rewards Revenues (a)


83


106


120


 N/A 


 N/A 



83


103


125


92


405


Hotel Management Reimbursable Revenues (b)


66


69


64


 N/A 


 N/A 



67


71


67


65


271


Intersegment Trademark Fees



13


15


16


 N/A 


 N/A 



13


15


16


14


56


Owned Hotel Revenues



23


21


16


 N/A 


 N/A 



27


19


17


17


81


Ancillary Revenues (c)



34


36


38


 N/A 


 N/A 



31


32


34


34


129


Total Hotel Group



298


345


368


 N/A 


 N/A 



295


334


364


316


1,309


























Destination Network
























Exchange Revenues



183


159


158


 N/A 


 N/A 



182


159


159


145


645


Rental Revenues



184


220


327


 N/A 


 N/A 



183


202


304


151


840


Ancillary Revenues (d)



24


26


26


 N/A 


 N/A 



20


23


23


21


86


Total Destination Network



391


405


511


 N/A 


 N/A 



385


384


486


317


1,571


























Vacation Ownership
























Vacation Ownership Interest Sales



351


448


467


 N/A 


 N/A 



342


409


441


415


1,606


Consumer Financing



111


114


119


 N/A 


 N/A 



107


108


112


113


440


Property Management Fees and Reimbursable Revenues


175


175


171


 N/A 


 N/A 



164


161


168


168


660


WAAM Fee-for-Service Commissions



2


4


8


 N/A 


 N/A 



17


16


13


-


46


Ancillary Revenues (e)



9


9


8


 N/A 


 N/A 



11


11


10


9


42


Total Vacation Ownership



648


750


773


 N/A 


 N/A 



641


705


744


705


2,794

Total Reportable Segments


$

1,337

$

1,500

$

1,652


 N/A 


 N/A 


$

1,321

$

1,423

$

1,594

$

1,338

$

5,674























































2015


2014






 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 

Hotel Group
























Royalties and Franchise Fees


$

74

$

96

$

103

$

87

$

361


$

68

$

88

$

100

$

83

$

339


Marketing, Reservation and Wyndham Rewards Revenues (a)


96


108


112


92


407



76


101


117


91


385


Hotel Management Reimbursable Revenues (b)


61


71


73


68


273



37


39


39


39


154


Intersegment Trademark Fees



12


15


16


15


57



9


11


11


10


41


Owned Hotel Revenues



25


20


16


19


79



24


20


18


20


81


Ancillary Revenues (c)



24


24


37


33


120



23


24


30


24


101


Total Hotel Group



292


334


357


314


1,297



237


283


315


267


1,101


























Destination Network
























Exchange Revenues



185


161


157


146