EX-99.1 2 d616029dex991.htm EX-99.1 EX-99.1

EXHIBIT 99.1

Wyndham Worldwide Corporation

2013 Earnings and Driver Guidance and 2014 Outlook

As of October 23, 2013

(In millions, except per share data)

 

Full Year 2013 Earnings Guidance (a) (b)

                 
     Low   High    

Net Revenues

          

Lodging

     $ 945       $ 995    

Vacation Exchange and Rentals

       1,525         1,600    

Vacation Ownership

       2,425         2,550    
    

 

 

     

 

 

   

Total Reportable Segments

     $ 4,925       $ 5,100    
    

 

 

     

 

 

   

Adjusted EBITDA

          

Lodging

     $ 290       $ 305    

Vacation Exchange and Rentals

       355         370    

Vacation Ownership

       595         620    

Corporate and Other

       (120 )       (115 )  
    

 

 

     

 

 

   

Total Adjusted EBITDA

       1,140         1,165    

Depreciation and amortization

       (216 )       (216 )  

Interest expense, net

       (121 )       (119 )  
    

 

 

     

 

 

   

Adjusted income before income taxes

       809         815    

Provision for income taxes (c)

       (299 )       (302 )  
    

 

 

     

 

 

   

Adjusted net income

     $ 510       $ 513    
    

 

 

     

 

 

   

Adjusted diluted earnings per share

     $ 3.78       $ 3.80    

Diluted shares

       135         135    

 

Fourth Quarter 2013

          
     Low   High  

Diluted earnings per share

     $ 0.70       $ 0.72    

Diluted shares

       132         132    

Full Year 2013 Driver Guidance (b) (d)

            
             EBITDA Impact of
100bps Change
     Low   High   Low    High

Lodging

                 

RevPAR

       4%           6%         $ 2        $ 3  

Number of Rooms

       2%           4%           2          3  

Vacation Exchange and Rentals

                 

Average Number of Members

       flat           flat         $ 3        $ 4  

Exchange Revenue Per Member

       1%           3%           6          7  

Vacation Rental Transactions

       6%           9%           1          2  

Average Net Price Per Vacation Rental

       6%           9%           7          8  

Vacation Ownership

                 

Tours

       6%           9%         $ 3        $ 4  

Volume Per Guest

       -2%           flat           4          5  

Full Year 2014 Outlook (e)

            
     Low   High  

Net revenues

     $ 5,250       $ 5,350    

EBITDA

     $ 1,215       $ 1,240    

Diluted earnings per share

     $ 4.12       $ 4.22    

Diluted shares

       133         133           

Notes:

(a)  Projections do not total because the Company does not expect the actual results of all segments to be at the highest or lowest end of any projected range simultaneously.
(b)  Guidance is based upon September 30, 2013 foreign exchange rates.
(c)  Full year tax rate is expected to be approximately 37.00%.
(d) A glossary of terms is included in Table 3 (3 of 3) of the Company’s Quarterly 2013 Earnings Release on Form 8-K, filed with the SEC on October 23, 2013.
(e)  It is not practicable to provide a reconciliation of forecasted adjusted measures to the most directly comparable GAAP measures because certain items cannot be reasonably estimated or predicted at this time.

Forward-Looking Statements

Guidance contains “forward-looking statements” as defined under U.S. securities laws, conveying management’s expectations as to future results. Forward-looking statements involve risks and uncertainties that may cause the Company’s actual results to be materially different from the future results expressed or implied by the statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this guidance. Factors that could cause actual results to differ materially from those in the forward-looking statements include the risk factors described in the Company’s SEC filings. Except for the Company’s obligations to disclose material information under securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.