Wyndham Worldwide Reports Fourth Quarter and Full Year 2012 Earnings

Published on : Thursday, February 7, 2013

Wyndham Worldwide Corporation (NYSE:WYN) today announced results for the three months and year ended December 31, 2012.

Highlights:

Fourth quarter adjusted diluted earnings per share (EPS) was $0.63, compared with $0.47 in the fourth quarter of 2011, an increase of 34%.  Fourth quarter 2012 reported diluted EPS was $0.57, an increase of 54% from the same period in 2011.

Free cash flow increased to $796 million for the year ended December 31, 2012, compared with $764 million in 2011.

The Company’s Board of Directors authorized an increase in the quarterly cash dividend to $0.29 from $0.23 per share, beginning with the dividend that is expected to be declared in the first quarter of 2013.

During the quarter, the Company repurchased 2.9 million shares of its common stock for $151 million.  For the full year, the Company spent $623 million to repurchase 12.9 million shares of its common stock.

“I’m pleased by our 30% adjusted EPS growth in 2012, especially coming off of 25% growth in 2011.  These results reflect the momentum in our business, the strong execution by our teams and a capital allocation philosophy that works for shareholders,” said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide.

FOURTH QUARTER 2012 OPERATING RESULTS

Fourth quarter revenues increased 9% from the prior year period to $1.1 billion. The increase primarily reflects growth in the Company’s lodging and vacation ownership businesses.

For the fourth quarter of 2012, adjusted net income was $89 million, or $0.63 per diluted share, compared with $73 million, or $0.47 per diluted share, for the same period in 2011.  The increase in adjusted net income primarily reflects stronger operating results at the Company’s lodging and vacation ownership businesses.  EPS also benefited from the Company’s share repurchase program, which reduced fourth quarter weighted average share count by 8% compared with the same period in 2011.

Reported net income for the fourth quarter of 2012 was $81 million, or $0.57 per diluted share, compared with net income of $56 million, or $0.37 per diluted share, for the fourth quarter of 2011.  Reported net income included several items not included in adjusted net income.  The net effect of these items was a reduction to net income of $8 million in the fourth quarter of 2012 and $17 million in the fourth quarter of 2011.  Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.

FULL YEAR 2012 OPERATING RESULTS

Revenues for full year 2012 were $4.5 billion, an increase of 7% over the prior-year period. The revenue increase resulted from growth in the lodging and vacation ownership businesses, partially offset by adverse foreign exchange translation impacts in the vacation exchange and rentals business.

Adjusted net income for the full year 2012 was $469 million, or $3.23 per diluted share, compared with $414 million, or $2.49 per diluted share, for the prior year.  The increase in adjusted net income primarily reflects stronger operating results at the Company’s lodging and vacation ownership businesses.  EPS also benefited from the Company’s share repurchase program, which reduced weighted average diluted share count by 13% compared with 2011.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)

Revenues were $293 million in the fourth quarter of 2012, compared with $291 million in the fourth quarter of 2011.  In constant currency and excluding the impact of acquisitions, revenues were flat.

Exchange revenues were $153 million, an increase of 2% compared with the fourth quarter of 2011.  In constant currency, exchange revenues were up 1% as a 3% increase in exchange revenue per member was partially offset by the impact of a 2% decline in the average number of members.  The decline in the average number of members was due to the non-renewal of an affiliation agreement at the beginning of 2012.

Vacation rental revenues were $125 million, flat compared with the fourth quarter of 2011, reflecting a 3% increase in transaction volume offset by a 2% decrease in the average net price per vacation rental.

Adjusted EBITDA for the fourth quarter of 2012 was $42 million, excluding $14 million of charges and impairments, up 11% compared with the prior-year period.  Excluding the impact of acquisitions and the net effect of foreign currency, adjusted EBITDA increased by 3% compared with the prior year period, primarily due to operating efficiencies in the business.

Source:- Wyndham Worldwide


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