Press Release

Printer Friendly Version View printer-friendly version
<< Back
Wyndham Worldwide Reports Fourth Quarter and Full Year 2015 Results
Full Year Adjusted Diluted EPS increased 13% over 2014
Increases Dividend 19%
One Billion Dollar Increase in Share Repurchase Authorization

PARSIPPANY, N.J., Feb. 9, 2016 /PRNewswire/ -- Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months and year ended December 31, 2015.

HIGHLIGHTS:

  • Fourth quarter adjusted diluted earnings per share (EPS) was $0.98, an increase of 9% from adjusted diluted EPS of $0.90 in the fourth quarter of 2014. Reported diluted EPS was $1.21, compared with $0.65 in the fourth quarter of 2014.
  • Full year adjusted diluted earnings per share (EPS) was $5.11, an increase of 13% from adjusted diluted EPS of $4.53 in 2014. Reported diluted EPS was $5.14, compared with $4.18 in 2014.
  • Fourth quarter 2015 revenues increased 6% and adjusted EBITDA increased 8% compared with the fourth quarter of 2014.
  • The Company's Board of Directors authorized an increase in the quarterly cash dividend to $0.50 from $0.42 per share, beginning with the dividend that is expected to be declared in the first quarter of 2016.
  • The Company repurchased 2.2 million shares of its common stock for $165 million during the quarter.
  • The Company's Board of Directors approved a $1 billion increase in the share repurchase authorization.

"With our strong fourth quarter financial results and sharp operational execution across our global portfolio of hospitality brands, we have delivered our sixth consecutive year of double-digit growth in full year adjusted diluted EPS," said Stephen P. Holmes, chairman and CEO.  "As we enter 2016, we are confident in the strength and resilience of our business and remain focused on innovating and executing every day to deliver superior value for our shareholders and all our stakeholders.  Reflecting our strong performance in 2015 and as an indication of our confidence in our prospects, the Board of Directors approved a 19% increase in our quarterly dividend and $1 billion increase in our share repurchase authorization."

FOURTH QUARTER 2015 OPERATING RESULTS
Fourth quarter revenues were $1.3 billion, an increase of 6% from the prior year period. 

Fourth quarter adjusted EBITDA was $273 million, compared with $252 million in the prior year period, an increase of 8%.  Year-over-year adjusted EBITDA comparisons were adversely affected by foreign currency effects of $8 million in 2015.  On a currency-neutral basis and excluding acquisitions and a divestiture, adjusted EBITDA also increased 8%.

Adjusted net income was $113 million, or $0.98 per diluted share, compared with $112 million, or $0.90 per diluted share for the same period in 2014.  Net income and earnings per share benefited from strong operating results, but were reduced by foreign currency effects and higher interest expense.  EPS also benefited from the Company's share repurchase program. 

Reported net income for the fourth quarter of 2015 was $140 million, or $1.21 per diluted share, compared with $81 million, or $0.65 per diluted share, for the fourth quarter of 2014.  Reported net income in both periods reflects several items excluded from adjusted net income.  The net result of these items favorably impacted fourth quarter 2015 net income by $27 million and unfavorably impacted fourth quarter 2014 net income by $31 million.  Full reconciliations of adjusted net income to GAAP results appear in Table 8 of this press release.  Year-over-year fourth quarter reported net income comparisons also were negatively impacted by foreign currency effects.

FULL YEAR 2015 OPERATING RESULTS
Revenues for full year 2015 were $5.5 billion, an increase of 5% over the prior year period. 

Adjusted EBITDA for full year 2015 was $1,297 million, compared with $1,238 million in the prior year period.  Year-over-year adjusted EBITDA comparisons were adversely affected by foreign currency effects of $46 million in 2015.  On a currency-neutral basis and excluding acquisitions and a divestiture, adjusted EBITDA increased 8%.

Adjusted net income for the full year 2015 was $608 million, or $5.11 per diluted share, compared with $573 million, or $4.53 per diluted share, for the prior year.  The increases reflect stronger operating results across all of the Company's businesses, partially offset by foreign currency effects.  EPS also benefited from the Company's share repurchase program.

Reported net income for full year 2015 was $612 million, or $5.14 per diluted share, compared with reported net income of $529 million, or $4.18 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 favorably impacted full year 2015 net income by $4 million and unfavorably impacted full year 2014 net income by $44 million.  Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.

FULL YEAR 2015 CASH FLOW
Free cash flow was $769 million for the year ended December 31, 2015, compared with $749 million for the same period in 2014.  The increase reflects strong operating results and lower capital expenditures.  In addition, 2015 free cash flow was unfavorably impacted by changes in foreign currency exchange rates.  For the year ended December 31, 2015, net cash provided by operating activities was $991 million, compared with $984 million in the prior year period.  The Company defines free cash flow as net cash provided by operating activities less capital expenditures. 

FOURTH QUARTER 2015 BUSINESS UNIT RESULTS

Hotel Group
Revenues were $314 million in the fourth quarter of 2015, an 18% increase compared with the fourth quarter 2014.  Adjusted EBITDA was $93 million, an 18% increase compared with the same period in 2014.  In constant currency, excluding acquisitions and the impact of the increase in the inter-segment licensing fee rate charged for use of the Wyndham brand trade name, revenues increased 6% and adjusted EBITDA increased 10%.  Results reflect higher royalty and management fees and growth in our Wyndham Rewards credit card program.

Fourth quarter domestic RevPAR increased 2.9%.  In constant currency, total system-wide RevPAR was flat compared with the fourth quarter of 2014, which reflects higher unit growth in lower RevPAR countries such as China. 

As of December 31, 2015, the Company's hotel system consisted of over 7,800 properties and 678,000 rooms, a 2.6% net room increase compared with the fourth quarter of 2014.  The development pipeline included 890 hotels and over 119,000 rooms, of which 60% were international and 70% were new construction.

Destination Network (formerly Vacation Exchange and Rentals)
Revenues were $310 million in the fourth quarter of 2015, flat compared with the fourth quarter of 2014. In constant currency, and excluding acquisitions and a divestiture in 2014, revenues increased 5%.

Exchange revenues were $146 million, down 3% compared with the fourth quarter of 2014. In constant currency, exchange revenues were up 1% compared with the prior year, as the average number of members increased 0.7% while exchange revenue per member was flat.

Vacation rental revenues were $144 million, flat compared with the fourth quarter of 2014.  In constant currency and excluding the impact of acquisitions and the divestiture, vacation rental revenues were up 8%, reflecting an 8.1% increase in transaction volume and flat average net price per vacation rental. 

Adjusted EBITDA for the fourth quarter of 2015 was $43 million, a 10% increase compared with the fourth quarter of 2014.  On a currency-neutral basis and excluding the impact of acquisitions and the divestiture, adjusted EBITDA increased 9% compared with the prior year period.

Vacation Ownership
Revenues were $706 million in the fourth quarter of 2015, a 6% increase over the fourth quarter of 2014.  In constant currency, revenues increased 7%.

Gross VOI sales were $507 million in the fourth quarter of 2015, an increase of 8% compared with the fourth quarter of 2014.  In constant currency, Gross VOI sales increased 9%.  Volume per guest (VPG) for the quarter increased 3.4% in constant currency and tour flow increased 4.7%.

Adjusted EBITDA for the fourth quarter of 2015 was $174 million, an increase of 1% compared with the fourth quarter of 2014.  On a currency-neutral basis and excluding the impact of the increase in the inter-segment licensing fee rate, adjusted EBITDA increased 5%, reflecting higher sales volume. 

OTHER ITEMS

  • The Company repurchased 2.2 million shares of common stock for $165 million during the fourth quarter of 2015. For the full-year 2015, the Company repurchased 7.9 million shares of common stock for $650 million. From January 1 through February 8, 2016, the Company repurchased an additional 1.6 million shares for $107 million.
  • The Company's Board of Directors approved a $1 billion increase in the share repurchase authorization. Including the increase, the Company's remaining share repurchase authorization totals $1.3 billion as of February 8, 2016.
  • Reported net interest expense in the fourth quarter of 2015 was $35 million, compared with $25 million in the fourth quarter of 2014, reflecting the $350 million 5.10% bond issued in September and the absence of a fixed-to-floating interest rate swap.

Balance Sheet Information as of December, 2015:

  • Cash and cash equivalents of $171 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 December 31, 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 2016, the Company provides the following guidance:

  • Revenues of approximately $5.800 - $5.950 billion.
  • Adjusted EBITDA of approximately $1.375 - $1.400 billion.
  • Adjusted EPS of approximately $5.46 - $5.60 based on a diluted share count of 116 million.

The Company will post guidance information 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, outlook and guidance on Tuesday, February 9, 2016 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 877-876-9177 and providing the pass code "WYNQ415."  Listeners are urged to call at least 10 minutes prior to the scheduled start time.  An archive of this webcast will be available on the website for approximately 90 days beginning at 12:00pm ET on February 9, 2016.  A telephone replay will be available for approximately 10 days beginning at 12:00pm ET on February 9, 2016 at 800-723-0607.

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 over 7,800 franchised hotels and 678,000 hotel rooms worldwide. Wyndham Destination Network is the world's largest provider of professionally managed, unique vacation accommodations with more than 112,000 vacation properties in over 100 countries, sending more than 13 million people annually to their desired destinations through its trusted, diverse network of 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 897,000 owners throughout the United States, Canada, Mexico, the Caribbean, and the South Pacific. Based in Parsippany, NJ, Wyndham Worldwide employs approximately 38,000 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, dividends, share repurchases 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 December 31, 2015 and 2014:





















Three Months Ended December 31, 






2015


2014






 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 



Hotel Group

$

314


$

94


$

267


$

77



Destination Network


310



44



311



2



Vacation Ownership


706



174



668



172



     Total Reportable Segments


1,330



312



1,246



251



Corporate and Other (a)


(19)



(37)



(15)



(36)



     Total Company

$

1,311


$

275


$

1,231


$

215



















Reconciliation of EBITDA to Net income




































Three Months Ended December 31, 









2015





2014



EBITDA





$

275





$

215



Depreciation and amortization





61






58



Interest expense





37






29



Interest income





(2)






(4)



Income before income taxes





179






132



Provision for income taxes





39






51



Net income





$

140





$

81



































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






















Three Months Ended December 31, 






2015


2014








Adjusted 




Adjusted 






 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 



Hotel Group

$

314


$

93


$

267


$

79



Destination Network


310



43



311



39



Vacation Ownership


706



174



668



172



     Total Reportable Segments


1,330



310



1,246



290



Corporate and Other


(19)



(37)



(15)



(38)



     Total Company

$

1,311


$

273


$

1,231


$

252



































 

 















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 for the twelve months ended December 31, 2015 and 2014:





















Twelve Months Ended December 31, 






2015


2014






 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 



Hotel Group

$

1,297


$

349


$

1,101


$

327



Destination Network


1,538



367



1,604



335



Vacation Ownership


2,772



687



2,638



660



     Total Reportable Segments


5,607



1,403



5,343



1,322



Corporate and Other (a)


(71)



(137)



(62)



(141)



     Total Company

$

5,536


$

1,266


$

5,281


$

1,181



















Reconciliation of EBITDA to Net income




































Twelve Months Ended December 31, 









2015





2014



EBITDA





$

1,266





$

1,181



Depreciation and amortization





234






233



Interest expense





125






113



Interest income





(9)






(10)



Income before income taxes





916






845



Provision for income taxes





304






316



Net income





$

612





$

529



































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






















Twelve Months Ended December 31, 






2015


2014








Adjusted 




Adjusted 






 Net Revenues 


 EBITDA 


 Net Revenues 


 EBITDA 



Hotel Group

$

1,297


$

376


$

1,101


$

340



Destination Network


1,538



370



1,604



380



Vacation Ownership


2,772



688



2,638



660



     Total Reportable Segments


5,607



1,434



5,343



1,380



Corporate and Other


(71)



(137)



(62)



(142)



     Total Company

$

5,536


$

1,297


$

5,281


$

1,238



































 

 















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, 






2015


2014


2015


2014


Net revenues















Service and membership fees


$

562


$

508


$

2,519


$

2,431



Vacation ownership interest sales



403



385



1,604



1,485



Franchise fees



157



151



674



632



Consumer financing



109



108



427



427



Other




80



79



312



306


Net revenues



1,311



1,231



5,536



5,281


















Expenses
















Operating



594



542



2,461



2,262



Cost of vacation ownership interests 



43



42



165



171



Consumer financing interest



19



18



74



71



Marketing and reservation



189



188



813



802



General and administrative



199



189



761



755



Loss on sale and asset impairments



-



27



7



35



Restructuring



(2)



12



6



11



Depreciation and amortization



61



58



234



233


Total expenses



1,103



1,076



4,521



4,340


















Operating income



208



155



1,015



941


Other (income)/expense, net



(6)



(2)



(17)



(7)


Interest expense



37



29



125



113


Interest income



(2)



(4)



(9)



(10)


















Income before income taxes



179



132



916



845


Provision for income taxes



39



51



304



316


Net income



$

140


$

81


$

612


$

529


















Earnings per share















Basic



$

1.22


$

0.66


$

5.18


$

4.22



Diluted



1.21



0.65



5.14



4.18


















Weighted average shares outstanding















Basic




115



122



118



125



Diluted



116



124



119



127


































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


Hotel Group (a)














Number of Rooms 

2015


667,400


668,500


671,900


678,000


 N/A 








2014


646,900


650,200


655,300


660,800


 N/A 








2013


631,800


635,100


638,300


645,400


 N/A 








2012


609,300


608,300


618,100


627,400


 N/A 





















RevPAR

2015

$

32.84

$

39.82

$

43.34

$

32.98

$

37.26








2014

$

32.30

$

40.11

$

43.71

$

34.06

$

37.57








2013

$

31.05

$

38.00

$

41.78

$

33.07

$

36.00








2012

$

29.73

$

37.23

$

40.39

$

31.86

$

34.80




















Destination Network














Average Number of Members (in 000s)

2015


3,822


3,831


3,835


3,836


3,831








2014


3,727


3,748


3,777


3,808


3,765








2013


3,668


3,686


3,711


3,728


3,698








2012


3,684


3,670


3,672


3,670


3,674





















Exchange Revenue Per Member

2015

$

194.06

$

167.81

$

163.38

$

152.00

$

169.29








2014

$

200.78

$

179.17

$

171.77

$

157.24

$

177.12








2013

$

210.96

$

182.42

$

169.95

$

161.21

$

181.02








2012

$

204.56

$

177.07

$

171.14

$

165.86

$

179.68





















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

2015


459


390


462


319


1,630








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

$

452.19

$

494.92








2014

$

410.04

$

577.13

$

727.40

$

492.25

$

558.95








2013

$

392.64

$

540.38

$

677.81

$

506.62

$

532.11








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

$

507,000

$

1,965,000








2014

$

410,000

$

496,000

$

513,000

$

470,000

$

1,889,000








2013

$

384,000

$

481,000

$

536,000

$

488,000

$

1,889,000








2012

$

384,000

$

460,000

$

502,000

$

435,000

$

1,781,000





















Tours (in 000s) (d)

2015


168


206


227


200


801








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

$

2,390

$

2,326








2014

$

2,272

$

2,280

$

2,158

$

2,336

$

2,257








2013

$

2,211

$

2,256

$

2,278

$

2,370

$

2,281








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 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 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


Hotel Group














Number of Properties

2015


7,670


7,700


7,760


7,810


 N/A 








2014


7,500


7,540


7,590


7,650


 N/A 








2013


7,380


7,410


7,440


7,490


 N/A 








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

$

64,000

$

248,000








2014

$

60,000

$

70,000

$

70,000

$

60,000

$

260,000








2013

$

84,000

$

90,000

$

102,000

$

73,000

$

349,000








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

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. 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 


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


649



187


168


162


150


667



Rental Revenues



166


200


296


144


807



176


217


331


144


868



Ancillary Revenues (d)



18


22


23


20


82



16


17


19


17


69



Total Destination Network



369


383


476


310


1,538



379


402


512


311


1,604




























Vacation Ownership

























Vacation Ownership Interest Sales



336


417


448


403


1,604



303


382


415


385


1,485



Consumer Financing



104


105


108


109


427



105


106


108


108


427



Property Management Fees and Reimbursable Revenues


153


149


159


155


615



143


145


150


142


581



WAAM Fee-for-Service Commissions


12


19


23


28


83



33


30


18


16


98



Ancillary Revenues (e)



12


9


12


11


43



9


10


13


17


47



Total Vacation Ownership



617


699


750


706


2,772



593


673


704


668


2,638


Total Reportable Segments


$

1,278

$

1,416

$

1,583

$

1,330

$

5,607


$

1,209

$

1,358

$

1,531

$

1,246

$

5,343


























































2013


2012







 Q1 


 Q2 


 Q3 


 Q4 


 Year 



 Q1 


 Q2 


 Q3 


 Q4 


 Year 


Hotel Group

























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