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Wyndham Worldwide Reports Fourth Quarter and Full Year 2014 Earnings
Fourth Quarter Adjusted Diluted EPS Growth of 23%
Annual Free Cash Flow Target Increased to $800 Million
Increases Dividend 20%

PARSIPPANY, N.J., Feb. 10, 2015 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months and year ended December 31, 2014. 

Highlights:

  • Fourth quarter adjusted diluted earnings per share (EPS) was $0.90, an increase of 23% from adjusted diluted EPS of $0.73 in the fourth quarter of 2013.  Reported diluted EPS was $0.65 in the fourth quarter of 2014, unchanged from the same period in 2013.
  • Full year adjusted diluted EPS was $4.53, an increase of 18% from adjusted diluted EPS of $3.83 for the prior year period.  Reported diluted EPS was $4.18 compared with $3.21 for the prior year period.
  • During the quarter, the Company repurchased 2.1 million shares of its common stock for $171 million.  For the full year, the Company spent $652 million to repurchase 8.6 million shares of its common stock.
  • The Company's Board of Directors authorized an increase in the quarterly cash dividend to $0.42 from $0.35 per share, beginning with the dividend that is expected to be declared in the first quarter of 2015.
  • The Company increased its annual free cash flow target to $800 million from $750 million beginning in 2015.

"A strong fourth quarter led to 18% growth in full-year adjusted EPS, capping another year of double-digit earnings growth," said Stephen P. Holmes, chairman and CEO.  "All three of our businesses performed well and we're enthusiastic about the opportunities and initiatives that will drive growth going forward.  As an indication of confidence in our prospects, the Board of Directors approved a 20% increase in our quarterly dividend."    

FOURTH QUARTER 2014 OPERATING RESULTS

Fourth quarter revenues were $1.2 billion, an increase of 3% from the prior year period, or 4% in constant currency.  The increase reflects growth in all of the Company's business segments.

Adjusted net income was $112 million, or $0.90 per diluted share, compared with $96 million, or $0.73 per diluted share for the same period in 2013.  The increases reflect stronger operating results in the Company's lodging and vacation exchange and rentals businesses and lower net interest expense.  EPS also benefited from the Company's share repurchase program, which decreased weighted average diluted share count by 5% year-over-year.

Reported net income for the fourth quarter of 2014 was $81 million, or $0.65 per diluted share, compared with $86 million, or $0.65 per diluted share, for the fourth quarter of 2013.  Reported net income in both periods reflects several items excluded from adjusted net income.  The net result of these items unfavorably impacted fourth quarter 2014 net income by $31 million and unfavorably impacted fourth quarter 2013 net income by $10 million.  Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.

FULL YEAR 2014 OPERATING RESULTS

Revenues for full year 2014 were $5.3 billion, an increase of 5% over the prior year period.  Adjusted net income for the full year 2014 was $573 million, or $4.53 per diluted share, compared with $515 million, or $3.83 per diluted share, for the prior year.  The increases reflect stronger operating results across all of the Company's businesses.  EPS also benefited from the Company's share repurchase program, which decreased weighted average diluted share count by 6% compared with 2013.

Reported net income for full year 2014 was $529 million, or $4.18 per diluted share, compared with reported net income of $432 million, or $3.21 per diluted share, for the prior year period.  Reported net income reflects several items excluded from adjusted net income.  The net result of these items unfavorably impacted full year 2014 net income by $44 million and unfavorably impacted full year 2013 net income by $83 million.  Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.

FULL YEAR 2014 CASH FLOW

Free cash flow was $749 million for the year ended December 31, 2014, compared with $770 million for the same period in 2013.  The Company defines free cash flow as net cash provided by operating activities less capital expenditures.  For the year ended December 31, 2014, net cash provided by operating activities was $984 million, compared with $1,008 million in the prior year period. 

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)

Revenues were $267 million in the fourth quarter of 2014, a 9% increase over the fourth quarter of 2013.    

Domestic RevPAR increased 8.6%, partially offset by a 7.8% decline in international RevPAR, resulting in a 3.0% increase in total system-wide RevPAR compared with the fourth quarter of 2013.  In constant currency, total system-wide RevPAR increased 5.0%. 

Adjusted EBITDA for the fourth quarter of 2014 was $79 million, a 23% increase compared with the fourth quarter of 2013.  The increase primarily reflects higher RevPAR and the favorable timing of loyalty and marketing expenses compared with the same period last year.

As of December 31, 2014, the Company's hotel system consisted of approximately 7,650 properties and approximately 661,000 rooms, a 2.4% room increase compared with the fourth quarter of 2013.  The development pipeline included approximately 960 hotels and 117,000 rooms, of which 57% were international and 64% were new construction.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)

Revenues were $311 million in the fourth quarter of 2014, a 2% increase over the fourth quarter of 2013.  In constant currency, revenues were up 6%.

Exchange revenues were $150 million, flat compared with the fourth quarter of 2013.  In constant currency, exchange revenues increased 2%, as the average number of members increased 2.2% and exchange revenue per member was flat.

Vacation rental revenues were $144 million, a 4% increase over the fourth quarter of 2013.  In constant currency, vacation rental revenues were up 11%, reflecting a 7.3% increase in transaction volume and a 3.3% increase in the average net price per vacation rental. 

Adjusted EBITDA for the fourth quarter of 2014 was $39 million, an 8% increase compared with the fourth quarter of 2013.  On a currency-neutral basis, adjusted EBITDA increased 14% compared with the prior year period due to the revenue increases and cost controls.

Vacation Ownership (Wyndham Vacation Ownership)

Revenues were $668 million in the fourth quarter of 2014, a 2% increase over the fourth quarter of 2013, primarily reflecting higher resort management fees. 

Gross VOI sales were $470 million in the fourth quarter of 2014, a decrease of 4% compared with the fourth quarter of 2013, reflecting a 1.4% decline in volume per guest and a 2.1% decline in tour flow.   

Net VOI sales were flat compared with the fourth quarter of 2013, reflecting a lower provision for loan loss resulting from improved portfolio performance.

EBITDA for the fourth quarter of 2014 was $172 million, flat compared with the fourth quarter of 2013.

Other Items

  • The Company repurchased 2.1 million shares of common stock for $171 million during the fourth quarter of 2014.  For the full-year 2014, the Company purchased 8.6 million shares of common stock for $652 million.  From January 1 through February 9, 2015, the Company repurchased an additional 0.8 million shares for $68 million.  The Company's remaining share repurchase authorization totals $948 million as of February 9, 2015.
  • Reported net interest expense in the fourth quarter of 2014 was $25 million, compared with $32 million in the fourth quarter of 2013, primarily reflecting the benefit of lower interest rates associated with fixed-for-floating interest rate swaps. 

Balance Sheet Information as of December 31, 2014:

  • Cash and cash equivalents of $183 million, compared with $194 million at December 31, 2013
  • Vacation ownership contract receivables, net, of $2.7 billion, compared with $2.8 billion at December 31, 2013
  • Vacation ownership and other inventory of $1.2 billion, compared with $1.0 billion at December 31, 2013   
  • Securitized vacation ownership debt of $2.2 billion, compared with $1.9 billion at December 31, 2013
  • Long-term debt of $2.9 billion, unchanged from December 31, 2013. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.3 billion as of December 31, 2014, unchanged from December 31, 2013

A schedule of debt is included in Table 5 of this press release.

Outlook

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

For the full year 2015, the Company provides the following guidance:

  • Revenues of approximately $5.450 - $5.550 billion from $5.400 - $5.500 billion.
  • Adjusted EBITDA of approximately $1.285 - $1.315 billion from $1.300 - $1.330 billion, reflecting the adverse impact of foreign exchange partially offset by stronger underlying performance. Based on January 31, 2015 rates, foreign exchange movements have had a $25 million adverse effect on 2015 EBITDA guidance since the Company's initial 2015 guidance, which was issued on October 24, 2014.  The Company's 2015 guidance reflects a $34 million adverse impact from foreign exchange compared with 2014 full year results.
  • Adjusted EPS of approximately $4.75 - $4.90 based on a diluted share count of 123 million from $4.70 - $4.85 based on a diluted share count of 125 million.

Conference Call Information

Wyndham Worldwide Corporation will hold a conference call with investors to discuss the Company's results, outlook and guidance on Tuesday, February 10, 2015 at 8:30 a.m. EST. Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors.   An archive of this webcast will be available on the website for approximately 90 days beginning at noon EST on February 10, 2015. The conference call may also be accessed by dialing 800-369-2125 and providing the passcode "WYNDHAM." Listeners are urged to call at least 10 minutes prior to the scheduled start time. A telephone replay will be available for approximately 90 days beginning at noon EST on February 10, 2015, at 888-484-4840.

The Company will post guidance information on its website following the conference call.

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 core operating performance.  Exclusion of items in our non-GAAP presentation should not be considered an inference that these items are unusual, infrequent or non-recurring.  A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.  It is not practicable to provide a reconciliation of forecasted adjusted EBITDA and adjusted EPS to the most directly comparable GAAP measures because certain items cannot be reasonably estimated or predicted at this time.  Any such items could be significant to the Company's reported results.

About Wyndham Worldwide Corporation

One of the world's largest hospitality companies, Wyndham Worldwide (NYSE: WYN) provides a wide range of hospitality services and products through its global portfolio of world-renowned brands.  The world's largest hotel company based on the number of properties, Wyndham Hotel Group is home to many of the world's best-known hotel brands, with over 7,600 franchised hotels and approximately 661,000 hotel rooms worldwide. Wyndham Exchange & Rentals is the worldwide leader in vacation exchange and the world's largest professionally managed vacation rentals business, providing more than 5 million leisure-bound families annually with access to over 107,000 vacation properties in over 100 countries through its prominent exchange and vacation rental brands. The industry and timeshare ownership market leader, Wyndham Vacation Ownership develops, markets, and sells vacation ownership interests and provides consumer financing to owners through its network of over 200 vacation ownership resorts serving approximately 904,000 owners throughout the United States, Canada, Mexico, the Caribbean, and the South Pacific. Based in Parsippany, NJ, Wyndham Worldwide employs over 34,000 associates globally. 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, conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements.  Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings, dividends and related financial and operating measures.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war, terrorist activity or political strife, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Annual Report on Form 10-K, filed with the SEC on February 14, 2014.  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














(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 interest) and income taxes, each of which is presented on the Company's Consolidated Statements of Income.  The Company believes that EBITDA is a useful measure of performance for the Company's segments which when considered with GAAP measures, gives a more complete understanding of its operating performance.  The Company's presentation of EBITDA may not be comparable to similarly-titled measures used by other companies. 















The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile EBITDA to Net income attributable to Wyndham shareholders for the three months ended December 31, 2014 and 2013:













Three Months Ended December 31,




2014


2013




 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Lodging

$

267


$

77


$

245


$

47


Vacation Exchange and Rentals


311



2



305



36


Vacation Ownership


668



172



658



172


     Total Reportable Segments


1,246



251



1,208



255


Corporate and Other (a)


(15)



(36)



(13)



(33)


     Total Company

$

1,231


$

215


$

1,195


$

222
















Reconciliation of EBITDA to Net income attributable to Wyndham shareholders
































Three Months Ended December 31, 







2014





2013


EBITDA




$

215





$

222


Depreciation and amortization





58






56


Interest expense





29






34


Interest income





(4)






(2)


Income before income taxes





132






134


Provision for income taxes





51






48


Net income attributable to Wyndham shareholders




$

81





$

86
















__________













(a)  Includes the elimination of transactions between segments.  















The following tables summarize net revenues and adjusted EBITDA for the Company's reportable segments for the three months ended December 31, 2014 and 2013 (for a description of adjustments by segment, see Table 7):

















Three Months Ended December 31, 




2014


2013




 Net Revenues 


 Adjusted
EBITDA 


 Net Revenues 


 Adjusted
EBITDA 


Lodging

$

267


$

79


$

245


$

64


Vacation Exchange and Rentals


311



39



305



36


Vacation Ownership


668



172



658



172


     Total Reportable Segments


1,246



290



1,208



272


Corporate and Other


(15)



(38)



(13)



(33)


     Total Company

$

1,231


$

252


$

1,195


$

239
















 

 














Table 1














(2 of 2)

Wyndham Worldwide Corporation

OPERATING RESULTS OF REPORTABLE SEGMENTS

(In millions)





























The following tables summarize net revenues and EBITDA for the Company's reportable segments, as well as reconcile EBITDA to Net income attributable to Wyndham shareholders for the twelve months ended December 31, 2014 and 2013:

















Twelve Months Ended December 31, 




2014


2013




 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 


Lodging

$

1,101


$

327


$

1,027


$

279


Vacation Exchange and Rentals


1,604



335



1,526



356


Vacation Ownership


2,638



660



2,515



619


     Total Reportable Segments


5,343



1,322



5,068



1,254


Corporate and Other (a)


(62)



(141)



(59)



(122)


     Total Company

$

5,281


$

1,181


$

5,009


$

1,132
















Reconciliation of EBITDA to Net income attributable to Wyndham shareholders
































Twelve Months Ended December 31, 







2014





2013


EBITDA




$

1,181





$

1,132


Depreciation and amortization





233






216


Interest expense





113






131


Early extinguishment of debt





-






111


Interest income





(10)






(9)


Income before income taxes





845






683


Provision for income taxes





316






250


Net income





529






433


Net income attributable to noncontrolling interest





-






(1)


Net income attributable to Wyndham shareholders




$

529





$

432
















__________













(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 twelve months ended December 31, 2014 and 2013 (for a description of adjustments by segment, see Table 7):








Twelve Months Ended December 31, 




2014


2013




 Net Revenues 


 Adjusted
EBITDA 


 Net Revenues 


 Adjusted
EBITDA 


Lodging

$

1,101


$

340


$

1,027


$

296


Vacation Exchange and Rentals


1,604



380



1,526



356


Vacation Ownership


2,638



660



2,515



621


     Total Reportable Segments


5,343



1,380



5,068



1,273


Corporate and Other


(62)



(142)



(59)



(121)


     Total Company

$

5,281


$

1,238


$

5,009


$

1,152
















 














Table 2

Wyndham Worldwide Corporation

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)
































 Three Months Ended 


 Twelve Months Ended 




 December 31, 


 December 31, 




2014


2013


2014


2013

Net revenues














Service and membership fees


$

508


$

496


$

2,431


$

2,329


Vacation ownership interest sales



385



384



1,485



1,379


Franchise fees



151



139



632



599


Consumer financing



108



108



427



426


Other



79



68



306



276

Net revenues



1,231



1,195



5,281



5,009















Expenses














Operating



542



517



2,262



2,161


Cost of vacation ownership interests 



42



48



171



155


Consumer financing interest



18



18



71



78


Marketing and reservation



188



180



802



751


General and administrative



189



193



755



720


Loss on sale and asset impairments



27



8



35



8


Restructuring



12



9



11



10


Depreciation and amortization



58



56



233



216

Total expenses



1,076



1,029



4,340



4,099















Operating income



155



166



941



910

Other income, net



(2)



-



(7)



(6)

Interest expense



29



34



113



131

Early extinguishment of debt



-



-



-



111

Interest income



(4)



(2)



(10)



(9)















Income before income taxes



132



134



845



683

Provision for income taxes



51



48



316



250

Net income



81



86



529



433

Net income attributable to noncontrolling interest


-



-



-



(1)

Net income attributable to Wyndham shareholders

$

81


$

86


$

529


$

432















Earnings per share














Basic


$

0.66


$

0.66


$

4.22


$

3.25


Diluted



0.65



0.65



4.18



3.21















Weighted average shares outstanding














Basic



122



129



125



133


Diluted



124



131



127



135

__________



























Note: For a description of adjustments to Net Income, see Table 8.





















 

 

















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

Lodging













Number of Rooms 

2014


646,900


650,200


655,300


660,800


 N/A 






2013


631,800


635,100


638,300


645,400


 N/A 






2012


609,300


608,300


618,100


627,400


 N/A 






2011


609,600


612,900


611,200


613,100


 N/A 


















RevPAR

2014

$

32.30

$

40.11

$

43.71

$

34.06

$

37.57






2013

$

31.05

$

38.00

$

41.78

$

33.07

$

36.00






2012

$

29.73

$

37.23

$

40.39

$

31.86

$

34.80






2011

$

27.71

$

35.38

$

39.49

$

30.65

$

33.34

















Vacation Exchange and Rentals













Average Number of Members (in 000s)

2014


3,727


3,748


3,777


3,808


3,765






2013


3,668


3,686


3,711


3,728


3,698






2012


3,684


3,670


3,672


3,670


3,674






2011


3,766


3,755


3,744


3,734


3,750


















Exchange Revenue Per Member

2014

$

200.78

$

179.17

$

171.77

$

157.24

$

177.12






2013

$

210.96

$

182.42

$

169.95

$

161.21

$

181.02






2012

$

204.56

$

177.07

$

171.14

$

165.86

$

179.68






2011

$

205.64

$

178.46

$

172.38

$

161.68

$

179.59


















Vacation Rental Transactions (in 000s) (a)

2014


429


376


455


293


1,552






2013


423


355


433


273


1,483






2012


418


325


390


259


1,392






2011


398


328


370


250


1,347


















Average Net Price Per Vacation Rental (a)

2014

$

410.04

$

577.13

$

727.40

$

492.25

$

558.95






2013

$

392.64

$

540.38

$

677.81

$

506.62

$

532.11






2012

$

379.40

$

524.40

$

635.44

$

484.69

$

504.55






2011

$

377.71

$

549.09

$

701.81

$

497.04

$

530.78

















Vacation Ownership (a)













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

2014

$

410,000

$

496,000

$

513,000

$

470,000

$

1,889,000






2013

$

384,000

$

481,000

$

536,000

$

488,000

$

1,889,000






2012

$

384,000

$

460,000

$

502,000

$

435,000

$

1,781,000






2011

$

319,000

$

412,000

$

455,000

$

409,000

$

1,595,000


















Tours (in 000s) (c)

2014


170


208


225


191


794






2013


163


206


225


195


789






2012


148


186


207


183


724






2011


137


177


197


173


685


















Volume Per Guest (VPG) (c)

2014

$

2,272

$

2,280

$

2,158

$

2,336

$

2,257






2013

$

2,211

$

2,256

$

2,278

$

2,370

$

2,281






2012

$

2,414

$

2,361

$

2,315

$

2,225

$

2,324






2011

$

2,192

$

2,227

$

2,197

$

2,296

$

2,229

















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












(a)

Includes the impact of acquisitions from the acquisition dates forward. Therefore, the operating statistics are not presented on a comparable basis.

(b)

Includes Gross VOI sales under the Company's Wyndham Asset Affiliate Model (WAAM) Just-in-Time beginning in the second quarter of 2012 (see Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales).

(c)

Includes the impact of WAAM Just-in-Time related tours beginning in the second quarter of 2012.

































ADDITIONAL DATA






















Year


Q1


Q2


Q3


Q4


Full Year

Lodging













Number of Properties

2014


7,500


7,540


7,590


7,650


 N/A 






2013


7,380


7,410


7,440


7,490


 N/A 






2012


7,150


7,170


7,260


7,340


 N/A 






2011


7,190


7,220


7,190


7,210


 N/A 

















Vacation Ownership













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

2014

$

60,000

$

70,000

$

70,000

$

60,000

$

260,000






2013

$

84,000

$

90,000

$

102,000

$

73,000

$

349,000






2012

$

96,000

$

100,000

$

124,000

$

89,000

$

409,000






2011

$

79,000

$

80,000

$

96,000

$

83,000

$

339,000

















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

















Lodging































Number of Rooms: Represents the number of rooms at lodging properties at the end of the period which are either (i) under franchise and/or management agreements, or company owned, (ii) properties under affiliation agreements for which the Company receives a fee for reservation and/or other services provided and (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 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 during the period in connection with customers booking their vacation rental stays through the Company. 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 during the period divided by the number of vacation rental transactions during the period.

















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.  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 2011-2014.  



















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

REVENUE DETAIL BY REPORTABLE SEGMENT

(In millions)




















































2014


2013





 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 

Lodging
























Royalties and Franchise Fees


$

68

$

88

$

100

$

83

$

339


$

64

$

79

$

91

$

75

$

309


Marketing, Reservation and Wyndham Rewards Revenues (a)


76


101


117


91


385



73


92


118


83


365


Hotel Management Reimbursable Revenues (b)


37


39


39


39


154



25


38


37


35


135


Intersegment Trademark Fees



9


11


11


10


41



8


10


11


10


39


Owned Hotel Revenues



24


20


18


20


81



26


20


18


19


84


Ancillary Revenues (c)



23


24


30


24


101



26


23


22


23


95


Total Lodging



237


283


315


267


1,101



222


262


297


245


1,027

























Vacation Exchange and Rentals
























Exchange Revenues



187


168


162


150


667



193


168


158


150


669


Rental Revenues



176


217


331


144


868



166


192


293


138


789


Ancillary Revenues (d)



16


17


19


17


69



15


16


19


17


68


Total Vacation Exchange and Rentals


379


402


512


311


1,604



374


376


470


305


1,526

























Vacation Ownership
























Vacation Ownership Interest Sales


303


382


415


385


1,485



263


347


384


384


1,379


Consumer Financing



105


106


108


108


427



105


106


107


108


426


Property Management Fees



143


145


150


142


581



146


141


143


137


567


WAAM Fee-for-Service Commissions


33


30


18


16


98



24


30


33


20


107


Ancillary Revenues (e)



9


10


13


17


47



11


6


10


9


36


Total Vacation Ownership



593


673


704


668


2,638



549


630


677


658


2,515

Total Reportable Segments


$

1,209

$

1,358

$

1,531

$

1,246

$

5,343


$

1,145

$

1,268

$

1,444

$

1,208

$

5,068




















































2012


2011





 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 

Lodging
























Royalties and Franchise Fees


$

62

$

80

$

88

$

71

$

301


$

58

$

75

$

85

$

66

$

284


Marketing, Reservation and Wyndham Rewards Revenues (a)


68


99


98


80


345



54


75


94


76


299


Hotel Management Reimbursable Revenues (b)


21


22


25


23


91



19


19


21


20


79


Intersegment Trademark Fees (f)



8


9


9


8


34



1


2


3


4


10


Owned Hotel Revenues



8


8


7


18


41



-


-


-


5


5


Ancillary Revenues (c)



18


15


22


23


78



17


19


19


17


72


Total Lodging



185


233


249


223


890



149


190


222


188


749

























Vacation Exchange and Rentals
























Exchange Revenues



188


162


157


153


660



194


168


161


150


673


Rental Revenues



159


170


248


125


702



150


180


260


125


715


Ancillary Revenues (d)



14


16


15