Press Release

Printer Friendly Version View printer-friendly version
<< Back
Wyndham Worldwide Reports Strong Third Quarter 2015 Results
Increases 2015 Adjusted EPS Guidance

PARSIPPANY, N.J., Oct. 27, 2015 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months ended September 30, 2015.

THIRD QUARTER HIGHLIGHTS:

  • Adjusted diluted earnings per share (EPS) was $1.78, an increase of 7% from adjusted diluted EPS of $1.67 in the third quarter of 2014. Reported diluted EPS was $1.61, compared with $1.64 in the third quarter of 2014.
  • Revenues for the third quarter of 2015 increased 3% compared with the third quarter of 2014. On a currency neutral basis and excluding the impact of acquisitions and a divestiture, revenues increased 6% and adjusted EBITDA increased 7%.
  • Gross vacation ownership sales increased 12% on a constant currency basis.
  • Vacation rental transactions increased 6% excluding the impact of acquisitions and a divestiture.
  • The Company repurchased 2.1 million shares of its common stock for $170 million during the quarter.

"We delivered great results in the third quarter across all our businesses, with more guests, staying more often, and more engaged than ever," said Stephen P. Holmes, chairman and CEO. "This quarter was highlighted by a double digit increase in gross vacation ownership interest sales, strong growth in vacation rental transaction volume, and increased activity through our re-invigorated loyalty program. We are connecting the widest range of guests around the globe with the accommodation options they desire."

THIRD QUARTER 2015 OPERATING RESULTS
Third quarter revenues were $1.6 billion, an increase of 3% from the prior year period.  Excluding acquisitions and a divestiture, constant currency revenues increased 6% reflecting growth in each of the Company's business segments.

Third quarter adjusted EBITDA was $412 million, compared with $418 million in the prior year period.  Year-over-year adjusted EBITDA comparisons were adversely affected by foreign currency effects of $17 million in 2015, and the absence of results in 2015 from Canvas Holiday, a U.K.-based camping business, which contributed $18 million of EBITDA in the third quarter 2014 and was divested in the fourth quarter of 2014.  Excluding these items and acquisitions, adjusted EBITDA increased 7%.

Adjusted net income was $210 million, or $1.78 per diluted share, compared with $210 million, or $1.67 per diluted share for the same period in 2014.  Net income and earnings per share benefited from strong operations, but were negatively affected by the same factors that influenced adjusted EBITDA comparisons, noted above.  EPS also benefited from the Company's share repurchase program, which decreased the weighted average diluted share count 6% year-over-year. 

Reported net income for the third quarter of 2015 was $190 million, or $1.61 per diluted share, compared with $206 million, or $1.64 per diluted share, for the third quarter of 2014.  Reported net income in both periods reflects several items excluded from adjusted net income.  The net result of these items unfavorably impacted third quarter 2015 net income by $20 million and unfavorably impacted third quarter 2014 net income by $4 million.  Full reconciliations of adjusted net income to GAAP results appear in Table 8 of this press release.  Year-over-year reported net income third quarter comparisons were negatively impacted by the same factors that influenced adjusted EBITDA comparisons, noted above.

Free cash flow was $660 million for the nine months ended September 30, 2015, compared with $750 million for the same period in 2014.  The decline in free cash flow reflects the timing of capital expenditures and working capital, including inventory spending.  The Company expects inventory spending in the fourth quarter of 2015 to be significantly lower than in the fourth quarter of 2014.  The Company defines free cash flow as net cash provided by operating activities less capital expenditures.  For the nine months ended September 30, 2015, net cash provided by operating activities was $817 million, compared with $899 million in the prior year period.

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)
Revenues were $357 million in the third quarter of 2015, a 13% increase compared with the third quarter 2014.  Adjusted EBITDA was $108 million, flat compared with the same period in 2014. 

In constant currency and excluding acquisitions, revenues increased 4% and adjusted EBITDA increased 3%, reflecting domestic RevPAR growth, which was partially offset by increased marketing expenditures and higher costs related to the implementation of new property management and central reservation systems.

Domestic RevPAR increased 5.2%.  In constant currency, total system-wide RevPAR increased 3.3%. 

As of September 30, 2015, the Company's hotel system consisted of approximately 7,760 properties and 672,000 rooms, a 2.5% room increase compared with the third quarter of 2014.  The development pipeline included 910 hotels and over 122,800 rooms, of which 61% were international and 68% were new construction.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)
Revenues were $476 million in the third quarter of 2015, a 7% decline compared with the third quarter of 2014. In constant currency, and excluding acquisitions and the impact of the divestiture of Canvas Holidays in 2014, revenues increased 6%.

Exchange revenues were $157 million, down 3% compared with the third quarter of 2014. In constant currency, exchange revenues were up 1% compared with the prior year, as the average number of members increased 1.5% while exchange revenue per member was flat.

Vacation rental revenues were $296 million, an 11% decrease compared with the third quarter of 2014.  In constant currency and excluding the impact of acquisitions and the divestiture, vacation rental revenues were up 8%, reflecting a 5.8% increase in transaction volume and a 1.7% increase in average net price per vacation rental. 

Adjusted EBITDA for the third quarter of 2015 was $137 million, a 14% decrease compared with the third quarter of 2014.  On a currency neutral basis and excluding the impact of acquisitions and the divestiture, adjusted EBITDA increased 5% compared with the prior year period.

Vacation Ownership (Wyndham Vacation Ownership)
Revenues were $750 million in the third quarter of 2015, a 7% increase over the third quarter of 2014.  In constant currency, revenues increased 8%.

Gross VOI sales were $565 million in the third quarter of 2015, an increase of 10% compared with the third quarter of 2014.  In constant currency, Gross VOI sales increased 12%.  Volume per guest (VPG) for the quarter increased 10.6% in constant currency while tour flow increased 0.9%. VPG increases were driven primarily by a higher average transaction size.

Adjusted EBITDA for the third quarter of 2015 was $201 million, an increase of 7% compared with the third quarter of 2014.  Results primarily reflect higher VPG.  On a currency neutral basis adjusted EBITDA increased 9%. 

OTHER ITEMS

  • The Company repurchased 2.1 million shares of common stock for $170 million during the third quarter of 2015.  From October 1 through October 26, 2015, the Company repurchased an additional 0.9 million shares for $70 million. The  Company's remaining share repurchase authorization totals $461 million as of October 26, 2015
  • Reported net interest expense in the third quarter of 2015 was $31 million, compared with $26 million in the third quarter of 2014 

Balance Sheet Information as of September 30, 2015:

  • Cash and cash equivalents of $259 million, compared with $183 million at December 31, 2014
  • Vacation ownership contract receivables, net, of $2.7 billion, unchanged from December 31, 2014
  • Vacation ownership and other inventory of $1.3 billion, compared with $1.2 billion at December 31, 2014
  • Securitized vacation ownership debt of $2.1 billion, compared with $2.2 billion at December 31, 2014
  • Long-term debt of $3.1 billion, compared with $2.9 billion at December 31, 2014. The remaining borrowing capacity on the revolving credit facility, net of commercial paper borrowings, was $1.4 billion as of September 30, 2015, compared with $1.3 billion at December 31, 2014

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
  • Adjusted EBITDA of approximately $1.285 - $1.315 billion. Guidance reflects a $46 million adverse earnings impact from foreign exchange compared with 2014 full year results
  • Adjusted EPS of approximately $5.06 to $5.09 based on a diluted share count of 119.4 million up from $4.88 to $5.03 based on a diluted share count of 120.2 million

"We were pleased with our performance across the Company in the third quarter, but we're even more excited by what lies ahead.  We have the broadest range of lodging accommodations in the world – including hotels, timeshare and rentals – spanning luxury to budget.  We are uniquely positioned to satisfy the burgeoning travel demand around the globe.  In 2016, we expect organic adjusted EBITDA growth consistent with our long-term target range of 6 – 8%," said Mr. Holmes.

Conference Call Information
Wyndham Worldwide Corporation will hold a conference call with investors to discuss the Company's results, outlook and guidance on Tuesday, October 27, 2015 at 8:30 a.m. EDT. 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 EDT on October 27, 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 EDT on October 27, 2015, at 800-388-4923.

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 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 approximately 7,760 franchised hotels and approximately 672,000 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 110,000 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 210 vacation ownership resorts serving approximately 900,000 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, cash flow and related financial and operating measures.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war, terrorist activity or political strife, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Annual Report on Form 10-K, filed with the SEC on February 13, 2015.  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 revenues) 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 for the three months ended September 30, 2015 and 2014:



















Three Months Ended September 30,





2015


2014





 Net Revenues


 EBITDA


 Net Revenues


 EBITDA



Lodging

$

357


$

83


$

315


$

100



Vacation Exchange and Rentals


476



134



512



159



Vacation Ownership


750



200



704



188



     Total Reportable Segments


1,583



417



1,531



447



Corporate and Other (a)


(19)



(35)



(17)



(36)



     Total Company

$

1,564


$

382


$

1,514


$

411


















Reconciliation of EBITDA to Net income


































Three Months Ended September 30,








2015





2014



EBITDA




$

382





$

411



Depreciation and amortization





59






60



Interest expense





33






28



Interest income





(2)






(2)



Income before income taxes





292






325



Provision for income taxes





102






119



Net income




$

190





$

206


















__________














(a) Includes the elimination of transactions between segments. 

















The following tables summarize net revenues and adjusted EBITDA for the Company's reportable segments for the three months ended September 30, 2015 and 2014 (for a description of adjustments by segment, see Table 7):




















Three Months Ended September 30,





2015


2014





 Net Revenues


 Adjusted
EBITDA


 Net Revenues


 Adjusted
EBITDA



Lodging

$

357


$

108


$

315


$

107



Vacation Exchange and Rentals


476



137



512



159



Vacation Ownership


750



201



704



188



     Total Reportable Segments


1,583



446



1,531



454



Corporate and Other


(19)



(34)



(17)



(36)



     Total Company

$

1,564


$

412


$

1,514


$

418


















 

 














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 nine months ended September 30, 2015 and 2014:





Nine Months Ended September 30,




2015


2014




 Net Revenues


 EBITDA


 Net Revenues


 EBITDA



Lodging

$

983


$

255


$

835


$

250



Vacation Exchange and Rentals


1,228



323



1,293



333



Vacation Ownership


2,067



513



1,970



488



     Total Reportable Segments


4,278



1,091



4,098



1,071



Corporate and Other (a)


(54)



(100)



(48)



(104)



     Total Company

$

4,224


$

991


$

4,050


$

967

















Reconciliation of EBITDA to Net income attributable to Wyndham shareholders




















Nine Months Ended September 30,







2015





2014



EBITDA




$

991





$

967



Depreciation and amortization





173






175



Interest expense





89






84



Interest income





(7)






(6)



Income before income taxes





736






714



Provision for income taxes





265






265



Net income





471






449



Net income attributable to noncontrolling interest





-






(1)



Net income attributable to Wyndham shareholders




$

471





$

448

















__________














(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, 2015 and 2014 (for a description of adjustments by segment, see Table 7):


















Nine Months Ended September 30,




2015


2014




 Net Revenues


 Adjusted
EBITDA


 Net Revenues


 Adjusted
EBITDA



Lodging

$

983


$

284


$

835


$

261



Vacation Exchange and Rentals


1,228



326



1,293



341



Vacation Ownership


2,067



514



1,970



488



     Total Reportable Segments


4,278



1,124



4,098



1,090



Corporate and Other


(54)



(101)



(48)



(103)



     Total Company

$

4,224


$

1,023


$

4,050


$

987

















 

 














Table 2

Wyndham Worldwide Corporation

CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share data)
































 Three Months Ended


 Nine Months Ended




 September 30, 


 September 30, 




2015


2014


2015


2014

Net revenues














Service and membership fees


$

734


$

717


$

1,957


$

1,922


Vacation ownership interest sales



448



415



1,201



1,101


Franchise fees



192



189



517



482


Consumer financing



108



108



318



319


Other



82



85



231



226

Net revenues



1,564



1,514



4,224



4,050















Expenses














Operating



691



613



1,865



1,721


Cost of vacation ownership interests 



43



49



123



129


Consumer financing interest



18



18



55



52


Marketing and reservation



218



227



624



614


General and administrative



200



188



562



564


Asset impairment



7



8



7



8


Restructuring



8



-



8



-


Depreciation and amortization



59



60



173



175

Total expenses



1,244



1,163



3,417



3,263















Operating income



320



351



807



787

Other income, net



(3)



-



(11)



(5)

Interest expense



33



28



89



84

Interest income



(2)



(2)



(7)



(6)















Income before income taxes



292



325



736



714

Provision for income taxes



102



119



265



265

Net income



190



206



471



449

Net income attributable to noncontrolling interest


-



-



-



(1)

Net income attributable to Wyndham shareholders

$

190


$

206


$

471


$

448















Earnings per share














Basic


$

1.62


$

1.65


$

3.96


$

3.55


Diluted



1.61



1.64



3.93



3.51















Weighted average shares outstanding














Basic



117



124



119



126


Diluted



118



126



120



128

__________



























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 (a)













Number of Rooms 

2015


667,400


668,500


671,900


 N/A 


 N/A 






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 


















RevPAR

2015

$

32.84

$

39.82

$

43.34


 N/A 


 N/A 






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

















Vacation Exchange and Rentals













Average Number of Members (in 000s)

2015


3,822


3,831


3,835


 N/A 


 N/A 






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


















Exchange Revenue Per Member

2015

$

194.06

$

167.81

$

163.38


 N/A 


 N/A 






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


















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

2015


459


390


462


 N/A 


 N/A 






2014


429


376


455


293


1,552






2013


423


355


433


273


1,483






2012


418


325


390


259


1,392


















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

2015

$

361.20

$

513.14

$

642.00


 N/A 


 N/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

















Vacation Ownership (a)













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

2015

$

390,000

$

502,000

$

565,000


 N/A 


 N/A 






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


















Tours (in 000s) (d)

2015


168


206


227


 N/A 


 N/A 






2014


170


208


225


191


794






2013


163


206


225


195


789






2012


148


186


207


183


724


















Volume Per Guest (VPG) (d)

2015

$

2,177

$

2,353

$

2,354


 N/A 


 N/A 






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

















Note:

Full year amounts may not add across due to rounding.










(a)

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

(b)

The vacation exchange and rentals 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 beginning in the second quarter of 2012 (see Table 9 for a reconciliation of Gross VOI sales to vacation ownership interest sales).

(d)

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

2015


7,670


7,700


7,760


 N/A 


 N/A 






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 

















Vacation Ownership













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

2015

$

46,000

$

60,000

$

78,000


 N/A 


 N/A 






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

















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 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.

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 2012-2015. 

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)




















































2015


2014





 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 

Lodging
























Royalties and Franchise Fees


$

74

$

96

$

103


 N/A 


 N/A 


$

68

$

88

$

100

$

83

$

339


Marketing, Reservation and Wyndham Rewards Revenues (a)


96


108


112


 N/A 


 N/A 



76


101


117


91


385


Hotel Management Reimbursable Revenues (b)


61


71


73


 N/A 


 N/A 



37


39


39


39


154


Intersegment Trademark Fees



12


15


16


 N/A 


 N/A 



9


11


11


10


41


Owned Hotel Revenues



25


20


16


 N/A 


 N/A 



24


20


18


20


81


Ancillary Revenues (c)



24


24


37


 N/A 


 N/A 



23


24


30


24


101


Total Lodging



292


334


357


 N/A 


 N/A 



237


283


315


267


1,101

























Vacation Exchange and Rentals
























Exchange Revenues



185


161


157


 N/A 


 N/A 



187


168


162


150


667


Rental Revenues



166


200


296


 N/A 


 N/A 



176


217


331


144


868


Ancillary Revenues (d)



18


22


23


 N/A 


 N/A 



16


17


19


17


69


Total Vacation Exchange and Rentals


369


383


476


 N/A 


 N/A 



379


402


512


311


1,604

























Vacation Ownership
























Vacation Ownership Interest Sales


336


417


448


 N/A 


 N/A 



303


382


415


385


1,485


Consumer Financing



104


105


108


 N/A 


 N/A 



105


106


108


108


427


Property Management Fees and Reimbursable Revenues


153


149


159


 N/A 


 N/A 



143


145


150


142


581


WAAM Fee-for-Service Commissions


12


19


23


 N/A 


 N/A 



33


30


18


16


98


Ancillary Revenues (e)



12


9


12


 N/A 


 N/A 



9


10


13


17


47


Total Vacation Ownership



617


699


750


 N/A 


 N/A 



593


673


704


668


2,638

Total Reportable Segments


$

1,278

$

1,416

$

1,583


 N/A 


 N/A 


$

1,209

$

1,358

$

1,531

$

1,246

$

5,343




















































2013


2012





 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 

Lodging
























Royalties and Franchise Fees


$

64

$

79

$

91

$

75

$

309


$

62

$

80

$

88

$

71

$

301


Marketing, Reservation and Wyndham Rewards Revenues (a)


73


92


118


83


365



68


99


98


80


345


Hotel Management Reimbursable Revenues (b)


25


38


37


35


135



21


22


25


23


91


Intersegment Trademark Fees



8


10


11


10


39



8


9


9


8


34


Owned Hotel Revenues



26


20


18


19


84



8


8


7


18


41


Ancillary Revenues (c)



26


23


22


23


95



18


15


22


23


78


Total Lodging



222


262


297


245


1,027



185


233


249


223


890

























Vacation Exchange and Rentals
























Exchange Revenues



193


168


158


150


669



188


162


157


153


660


Rental Revenues



166


192


293


138


789



159


170


248


125


702


Ancillary Revenues (d)



15


16


19


17


68



14


16


15


15


60


Total Vacation Exchange and Rentals


374


376


470


305


1,526



361


348


420


293


1,422

























Vacation Ownership
























Vacation Ownership Interest Sales


263


347


384


384


1,379



271


342


373


337


1,323


Consumer Financing



105


106


107


108


426



103


102


106


110


421


Property Management Fees



146


141


143