Wyndham Reports $73 Million in the Fourth Quarter of 2009

Wyndham Worldwide Corporation reported results for the three months and full year ended Dec. 31, 2009. The company generated fourth quarter diluted earnings per share (EPS) of $0.40, compared with company-issued guidance of $0.35-$0.38. For the year ended Dec. 31, 2009, Wyndham generated net cash from operating activities of approximately $690 million, compared with $109 million in 2008.

Revenues for the fourth quarter of 2009 were $913 million, relatively flat compared with the prior-year period. Net income for the fourth quarter of 2009 was $73 million, or $0.40 diluted EPS, compared with a fourth quarter of 2008 net loss of $1.4 billion, or $7.63 loss per diluted share. The prior-year period includes the after-tax impact of $1.4 billion, or $8.10 per diluted share, of goodwill impairments, foreign currency losses, restructuring costs and legacy items. Excluding these items, adjusted net income would have been $84 million, or $0.47 diluted adjusted EPS for the fourth quarter of 2008.

Revenues for full year 2009 were $3.8 billion, a decline of 12 percent over the prior-year period, reflecting the following: Lodging revenues were $660 million, a 12 percent decrease compared with 2008, primarily resulting from a global decline in revenue per available room (RevPAR).

Exchange and Rentals revenues were $1.2 billion, an 8 percent decrease compared with 2008, primarily resulting from unfavorable foreign exchange rate movements. In constant currency, revenues declined 2 percent. Vacation Ownership revenues were $1.9 billion, a 15 percent decrease compared with 2008, primarily resulting from the company’s previously announced initiative to reduce capital deployed in the business, which included sales office closures and the elimination of certain marketing programs that resulted in fewer tours.

Net income for the full year 2009 was $293 million, or $1.61 diluted EPS, compared with a prior-year period net loss of $1.1 billion, or $6.05 loss per diluted share. Adjusted net income for full year 2009 was $327 million, or $1.80 diluted EPS, compared with adjusted net income of $388 million, or $2.18 diluted adjusted EPS for full year 2008.

Adjusted net income for full year 2009 excludes the after-tax impact of $34 million, or $0.19 per diluted share, of restructuring costs and legacy items. Adjusted net income for the prior-year period excludes the after-tax impact of $1.5 billion, or $8.23 per diluted share, of goodwill and other impairments, foreign currency losses, restructuring costs and legacy items.

For Wyndham Hotel Group, revenues were $149 million in the fourth quarter of 2009, a 12 percent drop compared with the fourth quarter of 2009, primarily reflecting the global RevPAR decline. System-wide RevPAR declined 11.9 percent in the fourth quarter of 2009. In constant currency, fourth quarter 2009 system-wide RevPAR decreased 13.3 percent, reflecting declines of 13.8 percent and 15.4 percent in domestic and international RevPAR, respectively.