Wyndham Worldwide Reports Solid First Quarter 2008 Results
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Wyndham Worldwide Reports Solid First Quarter 2008 Results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2008-05-02
Announces reported EPS of $0.24, or adjusted EPS of $0.35 excluding legacy and rebranding charges
Announces a $200 Million Vacation Ownership Receivables Securitization
Affirms 2008 Guidance
Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months ended March 31, 2008.
FIRST QUARTER 2008 HIGHLIGHTS:
Download and view the Wyndham Worldwide First Quarter 2008 Financial Tables (MS Excel File)
* First quarter 2008 revenues were $1.0 billion, with solid performance across the Company’s three businesses. Revenue growth was reduced, as expected, by the impact of $82 million in deferred vacation ownership revenue.
o Gross Vacation Ownership Interest sales increased 7% compared to the first quarter of 2007.
o System-wide revenue per available room (RevPAR) increased 2.7% in the first quarter of 2008 compared to the first quarter of 2007, while comparable RevPAR rose 2.2% compared to the first quarter of 2007.
o Lodging opened over 10,000 rooms in the first quarter of 2008, ending the quarter with a hotel pipeline of almost 107,000 rooms.
o Average number of vacation exchange members increased 5%, or 158,000 members, compared to the first quarter of 2007, reaching 3.6 million members.
o Average net price per vacation rental increased 18% for first quarter 2008 compared to the first quarter of 2007, or 9% excluding the effect of currency translations.
* First quarter 2008 net income was $42 million or $0.24 diluted earnings per share. Adjusted net income excluding legacy and rebranding charges was $62 million or $0.35 adjusted diluted earnings per share. The Company had provided first quarter EPS guidance of $0.30-0.35.
* During the first quarter of 2008, Wyndham Worldwide repurchased approximately 520,000 shares. At March 31, 2008, approximately $155 million remained under the Company’s previously announced share repurchase program.
* On April 25, 2008, the Company priced a term securitization transaction involving the issuance of $200 million of investment grade asset-backed notes by Sierra Timeshare 2008-1 Receivables Funding, LLC, an indirect subsidiary of Wyndham Vacation Ownership. The transaction is expected to close on May 1, 2008.
“Wyndham Worldwide’s portfolio of resilient businesses and brands produced strong first-quarter results despite the challenging economic environment,” said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. “We are focused on our growth strategy while prudently managing costs, and we remain confident that our business model offers balance, strength and stability across economic cycles.”
FIRST QUARTER 2008 OPERATING RESULTS
Revenues for the first quarter of 2008 were $1.0 billion, flat compared to the first quarter of 2007, reflecting the expected impact of $82 million in deferred vacation ownership revenue recorded under the percentage-of-completion method of accounting. Excluding the net effect of deferred revenues in both periods, adjusted revenues would have grown 9%.
Net income for the first quarter of 2008 was $42 million or $0.24 diluted earnings per share, compared to $86 million or $0.45 diluted earnings per share for the first quarter of 2007.
Excluding $3 million in after-tax net expense from the resolution of, and adjustment to, certain legacy items and a $17 million after-tax, non-cash charge due to the Company’s initiative to rebrand its vacation ownership trademarks to the Wyndham brand, adjusted net income for the first quarter of 2008 would have been $62 million, or $0.35 adjusted diluted earnings per share (such amounts are not adjusted for the impact of the increase in deferred revenues).
Excluding $4 million after-tax of separation and related costs and excluding $9 million in after-tax net benefit from the resolution of, and adjustment to, certain legacy items, adjusted net income for the first quarter of 2007 would have been $81 million, or $0.43 adjusted diluted earnings per share.
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