Company News
Wyndham Worldwide Corporation (parent company of Endless Vacatation Rentals) announced results for the three months ended March 31, 2009. Results were above expectations resulting in a surge of its stocks of more than 35% yesterday. The stocks are currently trading on the highest level on a year-to-date basis.
Wyndham Worldwide 1 year stock performance
Press Release Excerpts:
HIGHLIGHTS:
- First quarter 2009 adjusted net income was $74 million, or $0.41 diluted earnings per share (EPS), compared with adjusted net income of $62 million, or $0.35 diluted EPS, for the first quarter of 2008.
- First quarter 2009 net cash from operating activities was approximately $210 million, compared with $87 million in the first quarter of 2008. The remaining borrowing capacity on the Company’s revolving credit facility increased to approximately $355 million compared with approximately $290 million as of December 31, 2008.
“Wyndham Worldwide delivered solid first quarter results despite strong economic headwinds and a significant reduction in revenues due to the realignment of our vacation ownership business,” said Stephen P. Holmes, Chairman and CEO, Wyndham Worldwide. “Adjusted EPS was up 17% from last year, and the Company generated net cash from operating activities of approximately $210 million. These results reflect the durability of our businesses and the resilience of our fee-for-service business models, as well as strong execution and continued cost discipline.”
Business Unit: Vacation Exchange and Rentals (Group RCI)
Revenues were $287 million in the first quarter of 2009, a 16% decrease compared with the first quarter of 2008, primarily related to the impact of a stronger U.S. dollar. In constant currency, revenues decreased 5%, reflecting lower rental and ancillary revenues.
Annual dues and exchange revenues were $127 million, a 7% decline from the first quarter of 2008, or relatively flat in constant currency. The revenues in constant currency reflect a 4% increase in the average number of members and a 5% decline in revenue per member.
Vacation rental revenues were $130 million, a 19% decrease from the first quarter of 2008. In constant currency, revenues generated from rental transactions and related services decreased $5 million, or 3%. The revenues in constant currency were driven by a 3% decrease in the average net price per rental. Rental transaction volume was flat compared with the first quarter of 2008.
Other ancillary revenues were $30 million, a 32% decrease from the first quarter of 2008. In constant currency, revenues decreased 25% due to lower miscellaneous fees and our termination of a low margin travel service contract.
First quarter 2009 EBITDA was $76 million, compared with $93 million in the first quarter of 2008. Excluding $4 million of restructuring costs, first quarter adjusted EBITDA was $80 million, a 14% decline from the prior year period. Excluding the unfavorable net effect of foreign currency translations of $12 million, adjusted EBITDA would have decreased $1 million, or 1%, from the first quarter of 2008.
To see the full press release click here:
To see a full earnings call transcript click here: