PARSIPPANY, N.J., Oct. 27, 2021 /PRNewswire/ -- Wyndham Hotels
& Resorts (NYSE: WH) today announced results for the three
months ended September 30, 2021.
Highlights include:
- U.S. RevPAR exceeded 2019 levels by 7%, growing 59% versus
2020.
- System-wide rooms grew 60 basis points sequentially,
including 40 basis points of growth in the U.S. and 80 basis points
of growth internationally.
- Diluted earnings per share of $1.09 compared to $0.29 in third quarter 2020; adjusted diluted EPS
of $1.16 compared to $0.36 in third quarter 2020.
- Net income of $103 million
compared to $27 million in third
quarter 2020; adjusted net income of $109
million compared to $34
million in third quarter 2020.
- Adjusted EBITDA of $194
million compared to $103
million in third quarter 2020.
- Net cash provided by operating activities of $147 million compared to $97 million in third quarter 2020; free cash flow
of $141 million compared to
$92 million in third quarter
2020.
- Returned $50 million to
shareholders in the quarter through $27
million of share repurchases and a quarterly cash dividend
of $0.24 per share.
- Board of Directors recently authorized a 33% increase in the
quarterly cash dividend to pre-pandemic level of $0.32 per share beginning with the dividend
expected to be declared in fourth quarter 2021.
- Company raises full-year 2021 outlook.
"Our resilient select-service franchising business model
continues to lead the industry's recovery with RevPAR well in
excess of 2019 levels. These results have been fueled by the many
investments we made over the last two years to capture an
increasing share of both leisure and everyday business travel,"
said Geoffrey A. Ballotti, president
and chief executive officer. "Developer interest in our brands is
strong. Our pipeline grew another 440 basis points and is now at
pre-pandemic levels. At the same time our teams opened over 50%
more rooms than we opened last year, and more rooms than we opened
in the third quarter of 2019. Our diversified brand portfolio, now
including our newly launched upper midscale all-inclusive brand,
Alltra, and compelling owner value proposition, combined with our
asset-light business model positions us to deliver strong free cash
flow and shareholder returns well into the future."
Fee-related and other revenues increased 48% to $377 million compared to $255 million in the third quarter of 2020
primarily reflecting the ongoing recovery in travel demand and its
impact on global RevPAR, which has now recovered to 97% of 2019
levels, including domestic RevPAR at 7% above 2019.
The Company generated net income of $103
million, or $1.09 per diluted
share, compared to net income of $27
million, or $0.29 per diluted
share, in the third quarter of 2020. The increase of $76 million, or $0.80 per diluted share, reflects the increase in
fee-related and other revenues and lower net interest expense,
partially offset by higher volume-related expenses due to the
ongoing recovery in travel demand.
The following discussion of third quarter operating results
focuses on the Company's key drivers as well as revenue and
adjusted EBITDA for each of the Company's segments. Full
reconciliations of GAAP results to the Company's non-GAAP adjusted
measures for all reported periods appear in the tables to this
press release.
System Size
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
QTD Change
(bps)
|
|
YTD Change
(bps)
|
United
States
|
|
486,800
|
|
40
|
|
(10)
|
International
|
|
315,800
|
|
80
|
|
230
|
Global
|
|
802,600
|
|
60
|
|
80
|
Year-to-date, the Company's global system grew 80 basis points,
reflecting quarter-over-quarter sequential growth of 60 basis
points driven by 40 basis points of growth in the U.S. and 80 basis
points of growth internationally. Third quarter room openings
exceeded 2019 levels by 4% globally reflecting a 46% increase in
domestic additions. The Company's annualized retention rate through
third quarter stood at approximately 95%, putting the Company
solidly on track with its goal of achieving a 95% retention rate
and its net room growth outlook of 1.5 to 2% for the full year
2021.
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
2021
|
|
YOY
Constant
Currency % Change
|
|
Constant
Currency % Change
vs. 2019
|
United
States
|
|
$
|
57.73
|
|
|
59
|
%
|
|
7
|
%
|
International
|
|
27.15
|
|
|
49
|
|
|
(25)
|
|
Global
|
|
45.80
|
|
|
56
|
|
|
(3)
|
|
Global and international RevPAR began to lap the onset of the
COVID-19 pandemic in January 2021,
while the U.S. began to lap its onset in March 2021. As such, comparisons to 2019 (on a
two-year, constant currency basis) are more meaningful when
evaluating trends. On this basis, third quarter RevPAR in the U.S.
exceeded 2019 levels by 7% while global RevPAR recovered to 97% of
2019 levels and international RevPAR declined 25%. The 7% increase
in the U.S. represents continued sequential improvement compared to
a decline of 5% in the second quarter of 2021. Notably, RevPAR for
the Company's economy brands exceeded 2019 levels by 14% in the
third quarter. The 25% international decline demonstrates strong
sequential progress from a 44% decline in second quarter led by
growth in regions where travel restrictions subsided. Canada improved 32 points to a 17% decline and
EMEA improved 43 points to a 25% decline, partially offset by a 10
point sequential decrease to a 17% decline in China due to travel restrictions resulting
from local COVID outbreaks in August and September.
Business Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Adjusted
EBITDA
|
|
|
Third
Quarter
2021
|
|
Third
Quarter
2020
|
|
%
Change
|
|
Third
Quarter
2021
|
|
Third
Quarter
2020
|
|
%
Change
|
Hotel
Franchising
|
|
$
|
337
|
|
|
$
|
236
|
|
|
43
|
%
|
|
$
|
193
|
|
|
$
|
119
|
|
|
62
|
%
|
Hotel
Management
|
|
126
|
|
|
101
|
|
|
25
|
|
|
16
|
|
|
2
|
|
|
n/a
|
|
Corporate and
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15)
|
|
|
(18)
|
|
|
17
|
|
Total
Company
|
|
$
|
463
|
|
|
$
|
337
|
|
|
37
|
|
|
$
|
194
|
|
|
$
|
103
|
|
|
88
|
|
Hotel Franchising revenues increased 43% year-over-year to
$337 million primarily due to the
global RevPAR increase. Hotel Franchising adjusted EBITDA increased
62% to $193 million reflecting the
growth in revenues as well as a timing benefit from the marketing
fund, partially offset by higher volume-related expenses.
Hotel Management revenues increased 25% year-over-year to
$126 million, including a
$4 million increase in
cost-reimbursement revenues, which have no impact on adjusted
EBITDA. Absent cost-reimbursements, Hotel Management revenues
increased $21 million, or 111%, to
$40 million primarily due to the
global RevPAR increase, as well as improved performance at the
Company's owned hotels. Hotel Management adjusted EBITDA increased
$14 million year-over-year reflecting
the revenue increases, partially offset by higher volume-related
expenses, and reflecting significant margin expansion (excluding
cost reimbursements) to 40% in 2021 from 11% in 2020.
During the third quarter 2021, the Company's marketing fund
revenues exceeded expenses by $19
million; while in third quarter 2020, the Company's
marketing fund expenses exceeded revenues by $8 million.
Development
The Company awarded 151 new contracts this quarter, 3% higher
than 2019. On September 30, 2021, the
Company's global development pipeline consisted of over 1,450
hotels and approximately 193,000 rooms. The pipeline grew 440 basis
points year-over-year and 120 basis points sequentially - including
90 basis points domestically and 140 basis points internationally.
Approximately 65% of the Company's development pipeline is
international and 76% is new construction, of which approximately
34% has broken ground.
Cash and Liquidity
The Company generated $147 million
of net cash provided by operating activities in the third quarter
of 2021 compared to $97 million in
third quarter 2020. The Company generated $141 million of free cash flow in the third
quarter of 2021 compared to $92
million in the third quarter 2020.
At September 30, 2021, the Company
had $193 million of cash on its
balance sheet and approximately $930
million in total liquidity. The Company's net debt leverage
ratio was 3.7 times at September 30,
2021 and within the Company's 3 to 4 times stated target
range.
Share Repurchases and Dividends
During the third quarter of 2021, the Company repurchased
approximately 374,000 shares of its common stock for $27 million at an average price of $73.13 per share.
The Company paid common stock dividends of $23 million, or $0.24 per share, in the third quarter of 2021.
The Company's Board of Directors authorized a 33% increase in the
quarterly cash dividend to pre-pandemic level of $0.32 per share, beginning with the dividend
expected to be declared in fourth quarter 2021.
2021 Outlook
The Company updated its outlook for full-year 2021 as
follows:
- Net rooms growth of 1.5% to 2% versus our prior outlook of 1%
to 2%.
- RevPAR growth of approximately 43% versus 2020, or a decline of
approximately 14% compared to 2019, which is improved from growth
of approximately 40% versus 2020, or a decline of approximately 16%
compared to 2019.
- Fee-related and other revenues of $1.21
billion to $1.23 billion, up
from $1.16 billion to $1.19 billion.
- Adjusted EBITDA of $560 million
to $570 million, up from $525 million to $535
million.
- Adjusted net income of $275
million to $285 million, up
from $244 million to $254 million.
- Adjusted diluted EPS of $2.93 to
$3.03, up from $2.60 to $2.70,
based on a diluted share count of 94.0 million that excludes any
share repurchases after September 30,
2021.
- Free cash conversion from Adjusted EBITDA of approximately 60%,
up from approximately 55%.
More detailed projections are available in Table 8 of this press
release. The Company is providing certain financial metrics only on
a non-GAAP basis because, without unreasonable efforts, it is
unable to predict with reasonable certainty the occurrence or
amount of all of the adjustments or other potential adjustments
that may arise in the future during the forward-looking period,
which can be dependent on future events that may not be reliably
predicted. Based on past reported results, where one or more of
these items have been applicable, such excluded items could be
material, individually or in the aggregate, to the reported
results.
Conference Call Information
Wyndham Hotels will hold a
conference call with investors to discuss the Company's results and
outlook on Thursday, October 28, 2021
at 8:30 a.m. ET. Listeners can access
the webcast live through the Company's website at
www.investor.wyndhamhotels.com. The conference call may also be
accessed by dialing 877 876-9173 and providing the passcode
"Wyndham". Listeners are urged to call at least five minutes prior
to the scheduled start time. An archive of this webcast will be
available on the website beginning at noon
ET on October 28, 2021. A
telephone replay will be available for approximately ten days
beginning at noon ET on October 28, 2021 at 800 839-4992.
Presentation of Financial Information
Financial
information discussed in this press release includes non-GAAP
measures, which include or exclude certain items. These non-GAAP
measures differ from reported GAAP results and are intended to
illustrate what management believes are relevant period-over-period
comparisons and are helpful to investors as an additional tool for
further understanding and assessing the Company's ongoing operating
performance. The Company uses these measures internally to assess
its operating performance, both absolutely and in comparison to
other companies, and to make day to day operating decisions,
including in the evaluation of selected compensation decisions.
Exclusion of items in the Company's non-GAAP presentation should
not be considered an inference that these items are unusual,
infrequent or non-recurring. Full reconciliations of GAAP results
to the comparable non-GAAP measures for the reported periods appear
in the financial tables section of this press release.
About Wyndham Hotels & Resorts
Wyndham Hotels
& Resorts (NYSE: WH) is the world's largest hotel franchising
company by the number of properties, with approximately 9,000
hotels across nearly 95 countries on six continents. Through its
network of approximately 803,000 rooms appealing to the everyday
traveler, Wyndham commands a leading presence in the economy and
midscale segments of the lodging industry. The Company operates a
portfolio of 22 hotel brands, including Super 8®, Days Inn®,
Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®,
Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham
Hotels & Resorts is also a leading provider of hotel management
services. The Company's award-winning Wyndham Rewards loyalty
program offers over 90 million enrolled members the opportunity to
redeem points at thousands of hotels, vacation club resorts and
vacation rentals globally. For more information, visit
www.wyndhamhotels.com. The Company may use its website as a means
of disclosing material non-public information and for complying
with its disclosure obligations under Regulation FD. Disclosures of
this nature will be included on the Company's website in the
Investors section, which can currently be accessed at
www.investor.wyndhamhotels.com. Accordingly, investors should
monitor this section of the Company's website in addition to
following the Company's press releases, filings submitted with the
Securities and Exchange Commission and any public conference calls
or webcasts.
Forward-Looking Statements
This press release contains "forward-looking statements"
within the meaning of the federal securities laws, including
statements related to Wyndham Hotels' current views and
expectations with respect to its future performance and operations,
including revenues, earnings, cash flow and other financial and
operating measures, share repurchases and dividends, restructuring
charges and statements related to the coronavirus pandemic
("COVID-19"). Forward-looking statements include those that convey
management's expectations as to the future based on plans,
estimates and projections at the time Wyndham Hotels makes the
statements and may be identified by words such as "will," "expect,"
"believe," "plan," "anticipate," "intend," "goal," "future,"
"outlook," "guidance," "target," "objective," "estimate,"
"projection" and similar words or expressions, including the
negative version of such words and expressions. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or
achievements of Wyndham Hotels to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, without
limitation, general economic conditions; the continuation or
worsening of the effects from COVID-19, its scope, duration and
impact on the Company's business operations, financial results,
cash flows and liquidity, as well as the impact on the Company's
franchisees and property owners, guests and team members, the
hospitality industry and overall demand for travel; the success of
the Company's mitigation efforts in response to COVID-19; the
Company's performance in any recovery from COVID-19; the
performance of the financial and credit markets; the economic
environment for the hospitality industry; operating risks
associated with the hotel franchising and management businesses;
the Company's relationships with franchisees and property owners;
the impact of war, terrorist activity, political instability or
political strife; concerns with or threats of pandemics, contagious
diseases or health epidemics, including the effects of COVID-19 and
any resurgence or mutations of the virus and actions governments,
businesses and individuals take in response to the pandemic,
including stay-in-place directives and other travel restrictions;
risks related to restructuring or strategic initiatives; risks
related to the Company's relationship with CorePoint Lodging; the
Company's ability to satisfy obligations and agreements under its
outstanding indebtedness, including the payment of principal and
interest and compliance with the covenants thereunder; risks
related to the Company's ability to obtain financing and the terms
of such financing, including access to liquidity and capital as a
result of COVID-19; and the Company's ability to make or pay, plans
for, and the timing and amount of any future share repurchases
and/or dividends, as well as the risks described in the Company's
most recent Annual Report on Form 10-K filed with the Securities
and Exchange Commission and any subsequent reports filed with the
Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, subsequent events or
otherwise.
Contacts
|
Investors:
|
Media:
|
Matt
Capuzzi
|
Scott
Carman
|
Senior Vice
President, Investor Relations
|
Senior Director,
Global Communications
|
973
753-6453
|
973
753-6590
|
ir@wyndham.com
|
WyndhamHotelsNews@wyndham.com
|
Table
1
|
WYNDHAM HOTELS
& RESORTS
|
INCOME/(LOSS)
STATEMENT
|
(In millions,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
revenues
|
|
|
|
|
|
|
|
Royalties and
franchise fees
|
$
|
144
|
|
|
$
|
96
|
|
|
$
|
344
|
|
|
$
|
250
|
|
Marketing,
reservation and loyalty
|
149
|
|
|
99
|
|
|
353
|
|
|
288
|
|
Management and other
fees
|
32
|
|
|
12
|
|
|
82
|
|
|
50
|
|
License and other
fees
|
20
|
|
|
21
|
|
|
60
|
|
|
63
|
|
Other
|
32
|
|
|
27
|
|
|
92
|
|
|
79
|
|
Fee-related and other
revenues
|
377
|
|
|
255
|
|
|
931
|
|
|
730
|
|
Cost
reimbursements
|
86
|
|
|
82
|
|
|
242
|
|
|
274
|
|
Net
revenues
|
463
|
|
|
337
|
|
|
1,173
|
|
|
1,004
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Marketing,
reservation and loyalty
|
130
|
|
|
107
|
|
|
327
|
|
|
311
|
|
Operating
|
33
|
|
|
25
|
|
|
92
|
|
|
82
|
|
General and
administrative
|
30
|
|
|
28
|
|
|
81
|
|
|
82
|
|
Cost
reimbursements
|
86
|
|
|
82
|
|
|
242
|
|
|
274
|
|
Depreciation and
amortization
|
23
|
|
|
24
|
|
|
70
|
|
|
73
|
|
Separation-related
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
Impairments,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
Restructuring
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
Transaction-related,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
302
|
|
|
266
|
|
|
815
|
|
|
1,071
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
161
|
|
|
71
|
|
|
358
|
|
|
(67)
|
|
Interest expense,
net
|
22
|
|
|
29
|
|
|
73
|
|
|
83
|
|
Early extinguishment
of debt
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Income/(loss)
before income taxes
|
139
|
|
|
42
|
|
|
267
|
|
|
(150)
|
|
Provision
for/(benefit from) income taxes
|
36
|
|
|
15
|
|
|
72
|
|
|
(25)
|
|
Net
income/(loss)
|
$
|
103
|
|
|
$
|
27
|
|
|
$
|
195
|
|
|
$
|
(125)
|
|
|
|
|
|
|
|
|
|
Earnings/(loss)
per share
|
|
|
|
|
|
|
|
Basic
|
$
|
1.10
|
|
|
$
|
0.29
|
|
|
$
|
2.09
|
|
|
$
|
(1.34)
|
|
Diluted
|
1.09
|
|
|
0.29
|
|
|
2.08
|
|
|
(1.34)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
93.6
|
|
|
93.3
|
|
|
93.5
|
|
|
93.4
|
|
Diluted
|
94.1
|
|
|
93.4
|
|
|
93.9
|
|
|
93.4
|
|
Table
2
|
WYNDHAM HOTELS
& RESORTS
|
HISTORICAL REVENUE
AND ADJUSTED EBITDA BY SEGMENT
|
|
|
|
|
The reportable
segments presented below represent our operating segments for which
separate financial information is available and is utilized on a
regular basis by our chief operating decision maker to assess
performance and allocate resources. In identifying our reportable
segments, we also consider the nature of services provided by our
operating segments. Management evaluates the operating results of
each of our reportable segments based upon net revenues and
adjusted EBITDA. We believe that adjusted EBITDA is a useful
measure of performance for our segments which, when considered with
GAAP measures, allows a more complete understanding of our
operating performance. We use this measure internally to
assess operating performance, both absolutely and in comparison to
other companies, and to make day to day operating decisions,
including in the evaluation of selected compensation decisions. Our
presentation of adjusted EBITDA may not be comparable to
similarly-titled measures used by other companies. During the first
quarter of 2021, we modified the definition of adjusted EBITDA to
exclude the amortization of development advance notes to reflect
how our chief operating decision maker reviews operating
performance beginning in 2021. We have applied the modified
definition of adjusted EBITDA to all periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
Hotel
Franchising
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
209
|
|
|
$
|
283
|
|
|
$
|
337
|
|
|
|
|
|
|
2020
|
243
|
|
|
182
|
|
|
236
|
|
|
$
|
202
|
|
|
$
|
863
|
|
|
2019
|
269
|
|
|
331
|
|
|
379
|
|
|
300
|
|
|
1,279
|
|
|
Adjusted
EBITDA (a)
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
105
|
|
|
$
|
166
|
|
|
$
|
193
|
|
|
|
|
|
|
2020
|
110
|
|
|
86
|
|
|
119
|
|
|
$
|
77
|
|
|
$
|
392
|
|
|
2019
|
115
|
|
|
164
|
|
|
197
|
|
|
153
|
|
|
629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Management
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
94
|
|
|
$
|
123
|
|
|
$
|
126
|
|
|
|
|
|
|
2020
|
167
|
|
|
76
|
|
|
101
|
|
|
$
|
94
|
|
|
$
|
437
|
|
|
2019
|
197
|
|
|
201
|
|
|
180
|
|
|
190
|
|
|
768
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
5
|
|
|
$
|
16
|
|
|
$
|
16
|
|
|
|
|
|
|
2020
|
17
|
|
|
(4)
|
|
|
2
|
|
|
$
|
(1)
|
|
|
$
|
13
|
|
|
2019
|
16
|
|
|
16
|
|
|
13
|
|
|
21
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and
Other
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
2020
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
2019
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
(13)
|
|
|
$
|
(14)
|
|
|
$
|
(15)
|
|
|
|
|
|
|
2020
|
(18)
|
|
|
(16)
|
|
|
(18)
|
|
|
$
|
(18)
|
|
|
$
|
(69)
|
|
|
2019
|
(18)
|
|
|
(19)
|
|
|
(18)
|
|
|
(19)
|
|
|
(74)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
303
|
|
|
$
|
406
|
|
|
$
|
463
|
|
|
|
|
|
|
2020
|
410
|
|
|
258
|
|
|
337
|
|
|
$
|
296
|
|
|
$
|
1,300
|
|
|
2019
|
468
|
|
|
533
|
|
|
560
|
|
|
492
|
|
|
2,053
|
|
|
Net
income/(loss)
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
24
|
|
|
$
|
68
|
|
|
$
|
103
|
|
|
|
|
|
|
2020
|
22
|
|
|
(174)
|
|
|
27
|
|
|
$
|
(7)
|
|
|
$
|
(132)
|
|
|
2019
|
21
|
|
|
26
|
|
|
45
|
|
|
64
|
|
|
157
|
|
|
Adjusted
EBITDA (a)
|
|
|
|
|
|
|
|
|
|
|
2021
|
$
|
97
|
|
|
$
|
168
|
|
|
$
|
194
|
|
|
|
|
|
|
2020
|
109
|
|
|
66
|
|
|
103
|
|
|
$
|
58
|
|
|
$
|
336
|
|
|
2019
|
113
|
|
|
161
|
|
|
192
|
|
|
155
|
|
|
621
|
|
___________________
|
NOTE: Amounts
may not add across due to rounding. See Table 7 for reconciliations
of Total Company non-GAAP measures and Table 9 for
definitions.
|
(a)
|
Adjusted EBITDA for
2020 and 2019 has been recast to exclude the amortization of
development advance notes to be consistent with the current year
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
3
|
WYNDHAM HOTELS
& RESORTS
|
CONDENSED CASH
FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
Operating
activities
|
|
|
|
Net
income/(loss)
|
$
|
195
|
|
|
$
|
(125)
|
|
Depreciation and
amortization
|
70
|
|
|
73
|
|
Impairment
(a)
|
—
|
|
|
209
|
|
Deferred income
taxes
|
4
|
|
|
(52)
|
|
Trade
receivables
|
(10)
|
|
|
(64)
|
|
Accounts payable,
accrued expenses and other current liabilities
|
18
|
|
|
5
|
|
Deferred
revenues
|
14
|
|
|
(43)
|
|
Other, net
|
36
|
|
|
54
|
|
Net cash provided
by operating activities
|
327
|
|
|
57
|
|
Investing
activities
|
|
|
|
Property and
equipment additions
|
(23)
|
|
|
(23)
|
|
Other, net
|
2
|
|
|
(1)
|
|
Net cash used in
investing activities
|
(21)
|
|
|
(24)
|
|
Financing
activities
|
|
|
|
Proceeds
from/(payments of) long-term debt, net
|
(525)
|
|
|
722
|
|
Dividends to
shareholders
|
(53)
|
|
|
(45)
|
|
Repurchases of common
stock
|
(26)
|
|
|
(50)
|
|
Other, net
|
(2)
|
|
|
(18)
|
|
Net cash (used
in)/provided by financing activities
|
(606)
|
|
|
609
|
|
Effect of changes in
exchange rates on cash, cash equivalents and restricted
cash
|
—
|
|
|
(1)
|
|
Net
(decrease)/increase in cash, cash equivalents and restricted
cash
|
(300)
|
|
|
641
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
493
|
|
|
94
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
193
|
|
|
$
|
735
|
|
|
|
|
|
Free Cash
Flow: We define free cash flow to be net cash provided by
operating activities less property and equipment additions, which
we also refer to as capital expenditures. We believe free cash flow
to be a useful operating performance measure to us and investors to
evaluate the ability of our operations to generate cash for uses
other than capital expenditures and, after debt service and other
obligations, our ability to grow our business through acquisitions
and investments, as well as our ability to return cash to
shareholders through dividends and share repurchases. This non-GAAP
measure is not necessarily a representation of how we will use
excess cash. A limitation of using free cash flow versus the GAAP
measure of net cash provided by operating activities as a means for
evaluating Wyndham Hotels is that free cash flow does not represent
the total cash movement for the period as detailed in the condensed
consolidated statement of cash flows.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net cash provided by
operating activities (b)
|
$
|
147
|
|
|
$
|
97
|
|
|
$
|
327
|
|
|
$
|
57
|
|
Less: Property and
equipment additions
|
(6)
|
|
|
(5)
|
|
|
(23)
|
|
|
(23)
|
|
Free cash
flow
|
$
|
141
|
|
|
$
|
92
|
|
|
$
|
304
|
|
|
$
|
34
|
|
_______________________
|
(a)
|
2020 excludes $3
million of cash proceeds from a previously impaired
asset.
|
(b)
|
The three and nine
months ended September 30, 2020 include $10 million and $58
million, respectively, of payments in connection with our
restructuring initiatives, our acquisition of La Quinta and our
spin-off from Wyndham Worldwide.
|
Table
4
|
WYNDHAM HOTELS
& RESORTS
|
BALANCE SHEET
SUMMARY AND DEBT
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
|
As of
September 30, 2021
|
|
As
of December 31, 2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
193
|
|
|
$
|
493
|
|
Trade receivables,
net
|
290
|
|
|
295
|
|
Property and
equipment, net
|
259
|
|
|
278
|
|
Goodwill and
intangible assets, net
|
3,211
|
|
|
3,240
|
|
Other current and
non-current assets
|
357
|
|
|
338
|
|
Total
assets
|
$
|
4,310
|
|
|
$
|
4,644
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Total debt
|
$
|
2,088
|
|
|
$
|
2,597
|
|
Other current
liabilities
|
350
|
|
|
325
|
|
Deferred income tax
liabilities
|
370
|
|
|
359
|
|
Other non-current
liabilities
|
379
|
|
|
400
|
|
Total
liabilities
|
3,187
|
|
|
3,681
|
|
Total stockholders'
equity
|
1,123
|
|
|
963
|
|
Total liabilities and
stockholders' equity
|
$
|
4,310
|
|
|
$
|
4,644
|
|
|
|
|
|
Our outstanding
debt was as follows:
|
|
|
|
|
As
of
September 30, 2021
|
|
As
of
December 31, 2020
|
|
|
$750 million
revolving credit facility (due May 2023)
|
$
|
—
|
|
|
$
|
—
|
|
Term loan (due May
2025)
|
1,544
|
|
|
1,554
|
|
5.375% senior
unsecured notes (due April 2026) (a)
|
—
|
|
|
496
|
|
4.375% senior
unsecured notes (due August 2028)
|
492
|
|
|
492
|
|
Finance
leases
|
52
|
|
|
55
|
|
Total debt
|
2,088
|
|
|
2,597
|
|
Cash and cash
equivalents
|
193
|
|
|
493
|
|
Net debt
|
$
|
1,895
|
|
|
$
|
2,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______________________
|
(a)
|
The Company redeemed
these notes on April 15, 2021 primarily with available
cash.
|
Our outstanding
debt as of September 30, 2021 matures as follows:
|
|
|
|
|
|
|
Amount
|
Within 1
year
|
|
|
$
|
21
|
|
Between 1 and 2
years
|
|
|
21
|
|
Between 2 and 3
years
|
|
|
22
|
|
Between 3 and 4
years
|
|
|
1,502
|
|
Between 4 and 5
years
|
|
|
7
|
|
Thereafter
|
|
|
515
|
|
Total
|
|
|
$
|
2,088
|
|
Table
5
|
WYNDHAM HOTELS
& RESORTS
|
REVENUE
DRIVERS
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2021
|
|
2020
|
|
Change
|
|
%
Change
|
|
|
Beginning Room
Count (January 1)
|
|
|
|
|
|
|
|
|
|
United
States
|
487,300
|
|
510,200
|
|
(22,900)
|
|
(4%)
|
|
|
International
|
308,600
|
|
320,800
|
|
(12,200)
|
|
(4)
|
|
|
Global
|
795,900
|
|
831,000
|
|
(35,100)
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
|
|
|
United
States
|
16,000
|
|
8,400
|
|
7,600
|
|
90
|
|
|
International
|
16,500
|
|
13,100
|
|
3,400
|
|
26
|
|
|
Global
|
32,500
|
|
21,500
|
|
11,000
|
|
51
|
|
|
|
|
|
|
|
|
|
|
|
|
Deletions
|
|
|
|
|
|
|
|
|
|
United
States
|
(16,500)
|
|
(20,900)
|
|
4,400
|
|
21
|
|
|
International
(a)
|
(9,300)
|
|
(27,600)
|
|
18,300
|
|
66
|
|
|
Global (a)
|
(25,800)
|
|
(48,500)
|
|
22,700
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Room Count
(September 30)
|
|
|
|
|
|
|
|
|
|
United
States
|
486,800
|
|
497,700
|
|
(10,900)
|
|
(2)
|
|
|
International
|
315,800
|
|
306,300
|
|
9,500
|
|
3
|
|
|
Global
|
802,600
|
|
804,000
|
|
(1,400)
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September
30,
|
|
FY 2019
Royalty
Contribution (c)
|
|
2021
|
|
2020
|
|
Change
|
|
%
Change (b)
|
|
System
Size
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
|
|
|
|
|
|
|
Economy
|
244,600
|
|
253,000
|
|
(8,400)
|
|
(3%)
|
|
|
Midscale and Upper
Midscale
|
223,900
|
|
229,100
|
|
(5,200)
|
|
(2)
|
|
|
Upscale and
Above
|
18,300
|
|
15,600
|
|
2,700
|
|
17
|
|
|
Total United
States
|
486,800
|
|
497,700
|
|
(10,900)
|
|
(2%)
|
|
86%
|
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
|
|
Greater
China
|
151,100
|
|
142,000
|
|
9,100
|
|
6%
|
|
3
|
Rest of Asia
Pacific
|
29,000
|
|
27,000
|
|
2,000
|
|
7
|
|
1
|
Europe, the Middle
East and Africa
|
65,700
|
|
67,400
|
|
(1,700)
|
|
(3)
|
|
4
|
Canada
|
39,700
|
|
40,600
|
|
(900)
|
|
(2)
|
|
5
|
Latin
America
|
30,300
|
|
29,300
|
|
1,000
|
|
3
|
|
1
|
Total
International
|
315,800
|
|
306,300
|
|
9,500
|
|
3%
|
|
14
|
|
|
|
|
|
|
|
|
|
|
Global
|
802,600
|
|
804,000
|
|
(1,400)
|
|
—%
|
|
100%
|
____________________
|
(a)
|
2020 includes the
termination of approximately 18,200 rooms including 14,000
master-franchisee rooms in Greater China, 1,300 rooms in the U.S.
and 2,900 unprofitable rooms in Europe, the Middle East and Africa
and the rest of Asia Pacific in connection with the Company's
previously announced strategic termination plan.
|
(b)
|
Includes the global
impact from the Company's previously announced strategic
termination plan in 2020 resulting in the removal of 8,500 rooms in
2020, including 6,900 rooms in the U.S., and 1,600 unprofitable
rooms in Europe, the Middle East and Africa and the rest of Asia
Pacific.
|
(c)
|
FY 2019 provided to
illustrate pre-pandemic results.
|
Table 5
(continued)
|
WYNDHAM HOTELS
& RESORTS
|
REVENUE
DRIVERS
|
|
|
|
|
|
|
|
Three Months
Ended September 30, 2021
|
|
Constant Currency % Change
(a)
|
|
Two-Year Basis % Change
(b)
|
Regional RevPAR
Growth
|
|
|
|
|
|
United
States
|
|
|
|
|
|
Economy
|
$
|
51.33
|
|
|
52%
|
|
14%
|
Midscale and Upper
Midscale
|
62.51
|
|
|
62
|
|
4
|
Upscale and
Above
|
93.42
|
|
|
127
|
|
(14)
|
Total United
States
|
$
|
57.73
|
|
|
59%
|
|
7%
|
|
|
|
|
|
|
International
|
|
|
|
|
|
Greater
China
|
$
|
16.70
|
|
|
18%
|
|
(17%)
|
Rest of Asia
Pacific
|
19.57
|
|
|
3
|
|
(53)
|
Europe, the Middle
East and Africa
|
40.81
|
|
|
90
|
|
(25)
|
Canada
|
54.45
|
|
|
56
|
|
(17)
|
Latin
America
|
18.44
|
|
|
172
|
|
(34)
|
Total
International
|
$
|
27.15
|
|
|
49%
|
|
(25%)
|
|
|
|
|
|
|
Global
|
$
|
45.80
|
|
|
56%
|
|
(3%)
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2021
|
|
2020
|
|
%
Change
|
Average Royalty
Rate
|
|
|
|
|
|
United
States
|
4.6%
|
|
4.4%
|
|
20 bps
|
International
|
2.2%
|
|
2.1%
|
|
10 bps
|
Global
|
4.1%
|
|
3.9%
|
|
20 bps
|
|
|
|
|
|
|
|
Nine Months
Ended September 30, 2021
|
|
Constant Currency % Change
(a)
|
|
Two-Year Basis % Change
(b)
|
Regional RevPAR
Growth
|
|
|
|
|
|
United
States
|
|
|
|
|
|
Economy
|
$
|
40.50
|
|
|
45%
|
|
3%
|
Midscale and Upper
Midscale
|
49.74
|
|
|
48
|
|
(10)
|
Upscale and
Above
|
72.01
|
|
|
59
|
|
(31)
|
Total United
States
|
$
|
45.64
|
|
|
47%
|
|
(6%)
|
|
|
|
|
|
|
International
|
|
|
|
|
|
Greater
China
|
$
|
16.30
|
|
|
68%
|
|
(16%)
|
Rest of Asia
Pacific
|
20.87
|
|
|
9
|
|
(46)
|
Europe, the Middle
East and Africa
|
24.35
|
|
|
20
|
|
(51)
|
Canada
|
33.73
|
|
|
24
|
|
(33)
|
Latin
America
|
15.37
|
|
|
26
|
|
(43)
|
Total
International
|
$
|
20.66
|
|
|
34%
|
|
(37%)
|
|
|
|
|
|
|
Global
|
$
|
35.94
|
|
|
44%
|
|
(16%)
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2021
|
|
2020
|
|
%
Change
|
Average Royalty
Rate
|
|
|
|
|
|
United
States
|
4.6%
|
|
4.5%
|
|
10 bps
|
International
|
2.2%
|
|
2.2%
|
|
—
|
Global
|
4.1%
|
|
4.0%
|
|
10 bps
|
|
________________________
|
(a)
|
International
excludes the impact of currency exchange movements.
|
(b)
|
Compares 2021 to
2019; international excludes the impact of currency exchange
movements.
|
Table
6
|
WYNDHAM HOTELS
& RESORTS
|
HISTORICAL REVPAR
AND ROOMS
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
Hotel
Franchising
|
|
|
|
|
|
|
|
|
|
|
|
Global
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
24.02
|
|
|
$
|
35.69
|
|
|
$
|
44.67
|
|
|
|
|
|
|
2020
|
|
$
|
25.90
|
|
|
$
|
17.05
|
|
|
$
|
28.83
|
|
|
$
|
23.19
|
|
|
$
|
23.74
|
|
|
2019
|
|
$
|
33.76
|
|
|
$
|
42.04
|
|
|
$
|
45.23
|
|
|
$
|
34.51
|
|
|
$
|
38.91
|
|
|
U.S.
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
29.68
|
|
|
$
|
46.99
|
|
|
$
|
56.38
|
|
|
|
|
|
|
2020
|
|
$
|
31.43
|
|
|
$
|
23.19
|
|
|
$
|
36.06
|
|
|
$
|
27.28
|
|
|
$
|
29.50
|
|
|
2019
|
|
$
|
37.69
|
|
|
$
|
48.65
|
|
|
$
|
51.93
|
|
|
$
|
37.96
|
|
|
$
|
44.09
|
|
|
International
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
15.26
|
|
|
$
|
18.21
|
|
|
$
|
26.62
|
|
|
|
|
|
|
2020
|
|
$
|
17.39
|
|
|
$
|
7.66
|
|
|
$
|
17.39
|
|
|
$
|
16.71
|
|
|
$
|
14.75
|
|
|
2019
|
|
$
|
27.56
|
|
|
$
|
31.59
|
|
|
$
|
34.79
|
|
|
$
|
29.15
|
|
|
$
|
30.80
|
|
|
Global
Rooms
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
748,700
|
|
|
752,500
|
|
|
758,600
|
|
|
|
|
|
|
2020
|
|
769,000
|
|
|
754,700
|
|
|
748,200
|
|
|
746,500
|
|
|
746,500
|
|
|
2019
|
|
745,300
|
|
|
751,300
|
|
|
758,400
|
|
|
770,200
|
|
|
770,200
|
|
|
U.S.
Rooms
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
452,500
|
|
|
454,200
|
|
|
458,000
|
|
|
|
|
|
|
2020
|
|
463,900
|
|
|
460,200
|
|
|
459,600
|
|
|
452,600
|
|
|
452,600
|
|
|
2019
|
|
454,900
|
|
|
457,600
|
|
|
460,100
|
|
|
464,600
|
|
|
464,600
|
|
|
International
Rooms
|
|
|
|
|
|
|
|
|
|
2021
|
|
296,200
|
|
|
298,300
|
|
|
300,600
|
|
|
|
|
|
|
2020
|
|
305,100
|
|
|
294,500
|
|
|
288,600
|
|
|
293,900
|
|
|
293,900
|
|
|
2019
|
|
290,400
|
|
|
293,700
|
|
|
298,300
|
|
|
305,600
|
|
|
305,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
Management
|
|
|
|
|
|
|
|
|
|
|
Global
RevPAR
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
38.17
|
|
|
$
|
56.08
|
|
|
$
|
64.63
|
|
|
|
|
|
|
2020
|
|
$
|
50.00
|
|
|
$
|
20.67
|
|
|
$
|
34.34
|
|
|
$
|
32.91
|
|
|
$
|
34.67
|
|
|
2019
|
|
$
|
63.25
|
|
|
$
|
66.67
|
|
|
$
|
66.65
|
|
|
$
|
59.19
|
|
|
$
|
64.01
|
|
|
U.S.
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
42.89
|
|
|
$
|
67.42
|
|
|
$
|
78.27
|
|
|
|
|
|
|
2020
|
|
$
|
54.35
|
|
|
$
|
23.21
|
|
|
$
|
39.12
|
|
|
$
|
34.14
|
|
|
$
|
37.97
|
|
|
2019
|
|
$
|
65.58
|
|
|
$
|
71.61
|
|
|
$
|
70.75
|
|
|
$
|
60.89
|
|
|
$
|
67.32
|
|
|
International
RevPAR
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
27.12
|
|
|
$
|
31.20
|
|
|
$
|
37.53
|
|
|
|
|
|
|
2020
|
|
$
|
38.07
|
|
|
$
|
13.78
|
|
|
$
|
23.16
|
|
|
$
|
29.86
|
|
|
$
|
26.21
|
|
|
2019
|
|
$
|
55.12
|
|
|
$
|
49.53
|
|
|
$
|
52.49
|
|
|
$
|
53.67
|
|
|
$
|
52.69
|
|
|
Global
Rooms
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
48,500
|
|
|
45,500
|
|
|
44,000
|
|
|
|
|
|
|
2020
|
|
59,300
|
|
|
58,200
|
|
|
55,800
|
|
|
49,400
|
|
|
49,400
|
|
|
2019
|
|
66,800
|
|
|
65,200
|
|
|
63,400
|
|
|
60,800
|
|
|
60,800
|
|
|
U.S.
Rooms
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
33,500
|
|
|
30,600
|
|
|
28,800
|
|
|
|
|
|
|
2020
|
|
42,900
|
|
|
41,800
|
|
|
38,100
|
|
|
34,700
|
|
|
34,700
|
|
|
2019
|
|
51,700
|
|
|
50,700
|
|
|
49,100
|
|
|
45,600
|
|
|
45,600
|
|
|
International
Rooms
|
|
|
|
|
|
|
|
|
|
2021
|
|
15,000
|
|
|
14,900
|
|
|
15,200
|
|
|
|
|
|
|
2020
|
|
16,400
|
|
|
16,400
|
|
|
17,700
|
|
|
14,700
|
|
|
14,700
|
|
|
2019
|
|
15,100
|
|
|
14,500
|
|
|
14,300
|
|
|
15,200
|
|
|
15,200
|
|
Table 6
(continued)
|
WYNDHAM HOTELS
& RESORTS
|
HISTORICAL REVPAR
AND ROOMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
Total
System
|
|
|
|
|
|
|
|
|
|
|
|
Global
RevPAR
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
24.90
|
|
|
$
|
36.92
|
|
|
$
|
45.80
|
|
|
|
|
|
|
2020
|
|
$
|
27.68
|
|
|
$
|
17.31
|
|
|
$
|
29.23
|
|
|
$
|
23.84
|
|
|
$
|
24.51
|
|
|
2019
|
|
$
|
36.21
|
|
|
$
|
44.06
|
|
|
$
|
46.94
|
|
|
$
|
36.36
|
|
|
$
|
40.92
|
|
|
U.S.
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
30.62
|
|
|
$
|
48.37
|
|
|
$
|
57.73
|
|
|
|
|
|
|
2020
|
|
$
|
33.45
|
|
|
$
|
23.19
|
|
|
$
|
36.31
|
|
|
$
|
27.80
|
|
|
$
|
30.20
|
|
|
2019
|
|
$
|
40.56
|
|
|
$
|
50.98
|
|
|
$
|
53.79
|
|
|
$
|
40.09
|
|
|
$
|
46.39
|
|
|
International
RevPAR
|
|
|
|
|
|
|
|
|
|
2021
|
|
$
|
15.83
|
|
|
$
|
18.84
|
|
|
$
|
27.15
|
|
|
|
|
|
|
2020
|
|
$
|
18.45
|
|
|
$
|
7.96
|
|
|
$
|
17.72
|
|
|
$
|
17.37
|
|
|
$
|
15.35
|
|
|
2019
|
|
$
|
28.92
|
|
|
$
|
32.47
|
|
|
$
|
35.63
|
|
|
$
|
30.29
|
|
|
$
|
31.85
|
|
|
Global
Rooms
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
797,200
|
|
|
798,000
|
|
|
802,600
|
|
|
|
|
|
|
2020
|
|
828,300
|
|
|
812,900
|
|
|
804,000
|
|
|
795,900
|
|
|
795,900
|
|
|
2019
|
|
812,100
|
|
|
816,600
|
|
|
821,800
|
|
|
831,000
|
|
|
831,000
|
|
|
U.S.
Rooms
|
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
486,000
|
|
|
484,800
|
|
|
486,800
|
|
|
|
|
|
|
2020
|
|
506,800
|
|
|
502,000
|
|
|
497,700
|
|
|
487,300
|
|
|
487,300
|
|
|
2019
|
|
506,600
|
|
|
508,300
|
|
|
509,200
|
|
|
510,200
|
|
|
510,200
|
|
|
International
Rooms
|
|
|
|
|
|
|
|
|
|
|
2021
|
|
311,200
|
|
|
313,200
|
|
|
315,800
|
|
|
|
|
|
|
2020
|
|
321,500
|
|
|
310,900
|
|
|
306,300
|
|
|
308,600
|
|
|
308,600
|
|
|
2019
|
|
305,500
|
|
|
308,300
|
|
|
312,600
|
|
|
320,800
|
|
|
320,800
|
|
_________________________
|
NOTE: Amounts
may not foot due to rounding. Results reflect the reclassification
of rooms from the Hotel Management segment to the Hotel Franchising
segment related to the CorePoint Lodging asset sales.
|
Table
7
|
WYNDHAM HOTELS
& RESORTS
|
NON-GAAP
RECONCILIATIONS
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
The tables below
reconcile certain non-GAAP financial measures. The presentation of
these adjustments is intended to permit the comparison of
particular adjustments as they appear in the income statement in
order to assist investors' understanding of the overall impact of
such adjustments. We believe that adjusted EBITDA, adjusted net
income and adjusted EPS financial measures provide useful
information to investors about us and our financial condition and
results of operations because these measures are used by our
management team to evaluate our operating performance and make
day-to-day operating decisions and adjusted EBITDA is frequently
used by securities analysts, investors and other interested parties
as a common performance measure to compare results or estimate
valuations across companies in our industry. These measures
also assist our investors in evaluating our ongoing operating
performance for the current reporting period and, where provided,
over different reporting periods, by adjusting for certain items
which may be recurring or non-recurring and which in our view do
not necessarily reflect ongoing performance. We also internally use
these measures to assess our operating performance, both absolutely
and in comparison to other companies, and in evaluating or making
selected compensation decisions. These supplemental disclosures are
in addition to GAAP reported measures. These non-GAAP
reconciliation tables should not be considered a substitute for,
nor superior to, financial results and measures determined or
calculated in accordance with GAAP.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income/(Loss) to Adjusted EBITDA:
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Full
Year
|
2021
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
24
|
|
|
$
|
68
|
|
|
$
|
103
|
|
|
|
|
|
Provision for income
taxes
|
11
|
|
|
25
|
|
|
36
|
|
|
|
|
|
Depreciation and
amortization
|
24
|
|
|
24
|
|
|
23
|
|
|
|
|
|
Interest expense,
net
|
28
|
|
|
22
|
|
|
22
|
|
|
|
|
|
Early extinguishment
of debt (a)
|
—
|
|
|
18
|
|
|
—
|
|
|
|
|
|
Stock-based
compensation expense
|
5
|
|
|
8
|
|
|
7
|
|
|
|
|
|
Development advance
notes amortization (b)
|
2
|
|
|
2
|
|
|
3
|
|
|
|
|
|
Separation-related
expenses (c)
|
2
|
|
|
1
|
|
|
—
|
|
|
|
|
|
Foreign currency
impact of highly inflationary
countries (d)
|
1
|
|
|
—
|
|
|
—
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
97
|
|
|
$
|
168
|
|
|
$
|
194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
|
22
|
|
|
$
|
(174)
|
|
|
$
|
27
|
|
|
$
|
(7)
|
|
|
$
|
(132)
|
|
Provision
for/(benefit from) income taxes
|
9
|
|
|
(48)
|
|
|
15
|
|
|
(2)
|
|
|
(26)
|
|
Depreciation and
amortization
|
25
|
|
|
25
|
|
|
24
|
|
|
24
|
|
|
98
|
|
Interest expense,
net
|
25
|
|
|
28
|
|
|
29
|
|
|
30
|
|
|
112
|
|
Stock-based
compensation expense
|
4
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
19
|
|
Development advance
notes amortization (b)
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
9
|
|
Impairments, net
(e)
|
—
|
|
|
206
|
|
|
—
|
|
|
—
|
|
|
206
|
|
Restructuring costs
(f)
|
13
|
|
|
16
|
|
|
—
|
|
|
5
|
|
|
34
|
|
Transaction-related
expenses, net (g)
|
8
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
12
|
|
Separation-related
expenses (c)
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
2
|
|
Foreign currency
impact of highly inflationary
countries
(d)
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
Adjusted
EBITDA
|
$
|
109
|
|
|
$
|
66
|
|
|
$
|
103
|
|
|
$
|
58
|
|
|
$
|
336
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
Net income
|
$
|
21
|
|
|
$
|
26
|
|
|
$
|
45
|
|
|
$
|
64
|
|
|
$
|
157
|
|
Provision for income
taxes
|
5
|
|
|
10
|
|
|
21
|
|
|
14
|
|
|
50
|
|
Depreciation and
amortization
|
29
|
|
|
27
|
|
|
26
|
|
|
28
|
|
|
109
|
|
Interest expense,
net
|
24
|
|
|
26
|
|
|
25
|
|
|
25
|
|
|
100
|
|
Stock-based
compensation expense
|
3
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
15
|
|
Development advance
notes amortization (b)
|
2
|
|
|
2
|
|
|
2
|
|
|
2
|
|
|
8
|
|
Impairment, net
(h)
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
45
|
|
Contract termination
costs (i)
|
—
|
|
|
9
|
|
|
34
|
|
|
(1)
|
|
|
42
|
|
Restructuring
costs (j)
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
Transaction-related
expenses, net (g)
|
7
|
|
|
11
|
|
|
12
|
|
|
10
|
|
|
40
|
|
Separation-related
expenses (c)
|
21
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
22
|
|
Transaction-related
item (k)
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
Foreign currency
impact of highly inflationary
countries (d)
|
1
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
5
|
|
Adjusted
EBITDA
|
$
|
113
|
|
|
$
|
161
|
|
|
$
|
192
|
|
|
$
|
155
|
|
|
$
|
621
|
|
|
_____________________
|
NOTE: Amounts
may not add due to rounding.
|
(a)
|
Relates to the
redemption premium and non-cash expenses associated with the early
redemption of the Company's 5.375% senior unsecured notes. These
expenses were recorded in interest expense, net on the Company's
income/(loss) statement.
|
(b)
|
Represents the
non-cash amortization of development advance notes, which is now
excluded from adjusted EBITDA to reflect how the Company's chief
operating decision maker reviews operating performance.
|
(c)
|
Represents costs
associated with the Company's spin-off from Wyndham
Worldwide.
|
(d)
|
Relates to the
foreign currency impact from hyper-inflation in Argentina, which is
reflected in operating expenses on the income statement.
|
(e)
|
Represents a non-cash
charge to reduce the carrying values of certain intangible assets
to their fair values principally attributable to higher discount
rates primarily resulting from increased share price volatility,
partially offset by $3 million of cash proceeds from a previously
impaired asset.
|
(f)
|
Represents charges
associated with restructuring initiatives implemented in response
to the effects on travel demand as a result of
COVID-19.
|
(g)
|
Primarily relates to
integration costs incurred in connection with the Company's
acquisition of La Quinta.
|
(h)
|
Represents a non-cash
charge associated with the termination of certain hotel-management
arrangements.
|
(i)
|
Represents costs
associated with the termination of certain hotel-management
arrangements.
|
(j)
|
Represents a charge
related to enhancing the Company's organizational efficiency and
rationalizing our operations.
|
(k)
|
Represents the
one-time fee credit related to the Company's agreement with
CorePoint Lodging, which is reflected as a reduction to hotel
management revenues on the income statement.
|
Table 7
(continued)
|
WYNDHAM HOTELS
& RESORTS
|
NON-GAAP
RECONCILIATIONS
|
(In millions,
except per share data)
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income/(Loss) and Diluted Earnings/(Loss) Per Share to Adjusted
Net Income and Adjusted Diluted EPS:
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Diluted
earnings/(loss) per share
|
$
|
1.09
|
|
|
$
|
0.29
|
|
|
$
|
2.08
|
|
|
$
|
(1.34)
|
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
$
|
103
|
|
|
$
|
27
|
|
|
$
|
195
|
|
|
$
|
(125)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Early extinguishment
of debt (a)
|
—
|
|
|
—
|
|
|
18
|
|
|
—
|
|
Acquisition-related
amortization expense (b)
|
9
|
|
|
9
|
|
|
27
|
|
|
28
|
|
Separation-related
expenses
|
—
|
|
|
—
|
|
|
3
|
|
|
1
|
|
Foreign currency
impact of highly inflationary countries
|
—
|
|
|
1
|
|
|
1
|
|
|
2
|
|
Impairments,
net
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
Restructuring
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
Transaction-related
expenses, net
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments
before tax
|
9
|
|
|
10
|
|
|
49
|
|
|
279
|
|
Income tax provision
(c)
|
3
|
|
|
3
|
|
|
12
|
|
|
65
|
|
Total adjustments
after tax
|
6
|
|
|
7
|
|
|
37
|
|
|
214
|
|
Adjusted net
income
|
$
|
109
|
|
|
$
|
34
|
|
|
$
|
232
|
|
|
$
|
89
|
|
Adjustments - EPS
impact
|
0.07
|
|
|
0.07
|
|
|
0.39
|
|
|
2.30
|
|
Adjusted diluted
EPS
|
$
|
1.16
|
|
|
$
|
0.36
|
|
|
$
|
2.47
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
94.1
|
|
|
93.4
|
|
|
93.9
|
|
|
93.5
|
|
______________________
|
(a)
|
Relates to the
redemption premium and non-cash expenses associated with the early
redemption of the Company's 5.375% senior unsecured notes. These
expenses were recorded in interest expense, net on the Company's
income/(loss) statement.
|
(b)
|
Reflected in
depreciation and amortization on the income/(loss)
statement.
|
(c)
|
Reflects the
estimated tax effects of the adjustments.
|
|
|
|
|
|
|
|
|
|
Table
8
|
WYNDHAM HOTELS
& RESORTS
|
2021
OUTLOOK
|
As of October 27,
2021
|
(In millions,
except per share data)
|
|
|
|
|
2021
Outlook
|
Fee-related and other
revenues (a)
|
$
|
1,210 -
1,230
|
Adjusted
EBITDA
|
|
560 - 570
|
Depreciation and
amortization expense (b)
|
|
55 - 57
|
Development advance
notes amortization expense
|
|
9 - 11
|
Stock-based
compensation expense
|
|
27 - 29
|
Interest expense, net
(c)
|
|
93 - 95
|
Adjusted income
before income taxes
|
|
370 - 385
|
Income tax expense
(d)
|
|
95 - 100
|
Adjusted net
income
|
$
|
275 - 285
|
|
|
|
Adjusted diluted
EPS
|
$
|
2.93 -
3.03
|
|
|
|
Diluted shares
(e)
|
|
94.0
|
|
|
|
Marketing,
reservation and loyalty funds
|
|
Approx.
+$5
|
|
|
|
Capital
expenditures
|
|
Approx.
$40
|
Development advance
notes
|
|
Approx.
$40
|
|
|
|
Free cash flow
conversion rate (f)
|
|
Approx.
60%
|
|
|
|
Year-over-Year
Growth
|
|
|
Global RevPAR
(g)
|
|
Approx.
43%
|
Number of
rooms
|
|
1.5% - 2%
|
_____________________
|
(a)
|
Includes $70 million
of license fees, which reflects the minimum levels outlined in the
underlying agreements.
|
(b)
|
Excludes amortization
of acquisition-related intangible assets of $36 - $38
million.
|
(c)
|
Excludes charges
relating to the early extinguishment of debt.
|
(d)
|
Outlook assumes an
effective tax rate of approximately 26%.
|
(e)
|
Excludes the impact
of any share repurchases after September 30, 2021.
|
(f)
|
Represents the
percentage of adjusted EBITDA that is expected to produce free cash
flow. Free cash flow plus capital expenditures equals net cash from
operating activities.
|
(g)
|
Compared to 2019,
outlook represents a 14% decline in global RevPAR.
|
|
|
In determining
adjusted EBITDA, interest expense, net, adjusted income before
income taxes, adjusted net income and adjusted diluted EPS, we
exclude certain items which are otherwise included in determining
the comparable GAAP financial measures. We are providing these
measures on a non-GAAP basis only because, without unreasonable
efforts, we are unable to predict with reasonable certainty the
occurrence or amount of all the adjustments or other potential
adjustments that may arise in the future during the forward-looking
period, which can be dependent on future events that may not be
reliably predicted. Based on past reported results, where one or
more of these items have been applicable, such excluded items could
be material, individually or in the aggregate, to the reported
results.
|
Table
9
|
WYNDHAM HOTELS
& RESORTS
|
DEFINITIONS
|
|
Adjusted Net
Income and Adjusted Diluted EPS: Represents net
income/(loss) and diluted earnings/(loss) per share excluding
acquisition-related amortization, impairment charges, restructuring
and related charges, contract termination costs,
transaction-related items (acquisition-, disposition-, or
separation-related) and foreign currency impacts of highly
inflationary countries. The Company calculates the income tax
effect of the adjustments using an estimated effective tax rate
applicable to each adjustment.
|
|
Adjusted
EBITDA: Represents net income/(loss) excluding net
interest expense, depreciation and amortization, early
extinguishment of debt charges, impairment charges, restructuring
and related charges, contract termination costs,
transaction-related items (acquisition-, disposition-, or
separation-related), foreign currency impacts of highly
inflationary countries, stock-based compensation expense, income
taxes and development advance notes amortization. Adjusted EBITDA
is a financial measure that is not recognized under U.S. GAAP and
should not be considered as an alternative to net income/(loss) or
other measures of financial performance or liquidity derived in
accordance with U.S. GAAP. In addition, the Company's definition of
adjusted EBITDA may not be comparable to similarly titled measures
of other companies.
|
|
During the first
quarter of 2021, the Company modified the definition of adjusted
EBITDA to exclude the amortization of development advance notes to
reflect how the Company's chief operating decision maker reviews
operating performance beginning in 2021. The Company has applied
the modified definition of adjusted EBITDA to all periods
presented.
|
Average Daily Rate
(ADR): Represents the average rate charged for renting a
lodging room for one day.
|
|
Average Occupancy
Rate: Represents the percentage of available rooms
occupied during the period.
|
|
Constant
Currency: Represents a comparison eliminating the effects of
foreign exchange rate fluctuations between periods (foreign
currency translation) and the impact caused by any foreign exchange
related activities (i.e., hedges, balance sheet remeasurements
and/or adjustments).
|
|
Free Cash
Flow: See Table 3 for definition.
|
|
Number of
Rooms: Represents the number of rooms at the end of the
period which are (i) either under franchise and/or management
agreements or Company-owned and (ii) properties under affiliation
agreements for which we receive a fee for reservation and/or other
services provided.
|
|
RevPAR: Represents revenue per available
room and is calculated by multiplying average occupancy rate by
ADR.
|
|
Royalty
Rate: Represents the average royalty rate earned on our
franchised properties and is calculated by dividing total
royalties, excluding the impact of amortization of development
advance notes, by total room revenues.
|
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SOURCE Wyndham Hotels & Resorts