Wyndham Worldwide Corporation, joining many other hotel companies in reporting lower third quarter results, said it had revenues of $1,016 million during the quarter, down 17 percent from the prior-year period due to a previously announced initiative to reduce the deployment of capital in the company's vacation ownership business, continued weakness in the global lodging industry, and unfavorable foreign exchange rate movements which negatively impacted the company's exchange and rentals business. Net income for the third quarter was $104 million, or $0.57 diluted EPS, compared with net income of $142 million, or $0.80 diluted EPS, in the same quarter last year.

Adjusted net income for the third quarter of 2009 was $106 million, or $0.58 diluted adjusted EPS, compared with third quarter 2008 adjusted net income of $148 million, or $0.83 diluted adjusted EPS. Third quarter 2009 includes the after-tax impact of $2 million, or $0.01 diluted EPS, of legacy items. Third quarter 2008 net income includes the after-tax impact of $6 million, or $0.03 diluted EPS, of restructuring costs and legacy items.

But Wyndham also said it generated higher diluted adjusted earnings per share (EPS) of $0.58, compared with company-issued guidance of $0.53 to $0.57. Reported EPS was $0.57. The company also raised full-year 2009 adjusted EBITDA guidance to $775-$825 million, compared with prior guidance of $760-$810 million. For the nine months ended Sept. 30, 2009, the company generated net cash from operating activities of approximately $570 million, compared with $146 million in 2008.

“Wyndham Worldwide delivered solid results in the third quarter, once again demonstrating the benefits of a strong, resilient business model and excellent execution,” said Stephen Holmes, chairman and CEO. “We continue to transform the company by rebalancing our worldwide business portfolio to increase the contribution of fee-for-service businesses and drive strong cash flow."

Wyndham Hotel Group reported revenues were $183 million in the third quarter of 2009, a decline of 14 percent compared with the third quarter of 2008, primarily reflecting a decline in worldwide revPAR. Third quarter 2009 system-wide revPAR decreased 17 percent, reflecting declines of 16 percent and 21.9 percent in domestic and international revPAR, respectively. Third quarter 2009 EBITDA was $58 million compared with $72 million in the third quarter of 2008, which included $4 million of restructuring costs. The reduction in EBITDA reflects the decline in worldwide revPAR and other franchise fees, partly offset by lower marketing expenses. As of Sept. 30, 2009, the company's hotel system consisted of approximately 7,040 properties and 590,900 rooms, of which 21 percent were international. The development pipeline included approximately 1,000 hotels and 110,800 rooms, of which 50 percent were new construction and 41 percent were international.

In other news Wyndham has renamed Group RCI as Wyndham Exchange and Rentals to more accurately reflect the two fee-based businesses where Wyndham has leadership positions. Revenues were $327 million in the third quarter of 2009, an 8 percent decrease compared with the third quarter of 2008, primarily resulting from the impact of unfavorable foreign currency movements. Excluding the impact of foreign currency, revenues were flat. Excluding the impact of foreign currency annual dues and exchange revenues were flat compared with the third quarter of 2008, reflecting a 3 percent increase in the average number of members and a 3 percent decline in revenue per member. Including the impact of foreign currency, revenues were $110 million, a 4 percent decrease from the prior year period.

Excluding the impact of foreign currency vacation rental revenues increased $5 million, or 3 percent compared with the third quarter of 2008, primarily driven by a 2 percent increase in rental transaction volume and a 1 percent increase in average price per vacation rental. Including the impact of foreign currency, revenues were $185 million, a 7 percent decrease from the prior year period. Third quarter 2009 EBITDA increased 2 percent to $107 million, compared with $105 million in the third quarter of 2008, which included $2 million of restructuring costs. Excluding an unfavorable net effect of foreign currency of $14 million and restructuring costs, adjusted EBITDA would have increased $14 million, or 13 percent, from the third quarter of 2008, primarily reflecting cost savings. For more information, visit www.wyndhamworldwide.com.
 

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