Forgot Password

Post Spin-Off, Wyndham Destinations Reports Strong Q2

ORLANDO, FL—During the second quarter, Wyndham Destinations completed the spin-off of Wyndham Hotels & Resorts to become a pure-play vacation ownership and exchange company.

In an earnings release, Michael D. Brown, president and CEO of Wyndham Destinations, reaffirmed the company’s full-year revenue and further adjusted EBITDA guidance and commitment to return capital to shareholders through dividends and share repurchases.

“Our team has executed extremely well on our key strategic priorities over a busy period. We are very pleased with a strong second quarter to finish a robust first half of 2018, with solid results in both of our operating segments. During the second quarter, we increased further adjusted EBITDA by 7%, EBITDA margin by 90 basis points, new owner mix by 260 basis points and initiated our first post-spin buyback of Wyndham Destinations shares,” said Brown. “Looking ahead, we are committed to driving growth in our core business and delivering value to our shareholders.

Highlights include the following:

  • Reported revenue, net income and diluted earnings per share (EPS) of $1 billion, $378 million and $3.77, respectively.
  • Further adjusted net income increased 9% to $125 million. Further adjusted diluted EPS increased 14% to $1.25, compared to guidance of $1.13-$1.23.
  • Further adjusted EBITDA increased 7% to $249 million, compared to guidance of $240-$250 million.
  • Repurchased $42 million of stock in the second quarter, including $15 million in June.
  • Reaffirmed full-year 2018 revenue and further adjusted EBITDA guidance and increased further adjusted diluted EPS guidance to $4.74-$4.94.

Results From Continuing Operations

On May 9, the company sold its European vacation rentals business to an affiliate of Platinum Equity LLC, generating net proceeds of $1.03 billion and on May 31, it completed the spin-off of its hotel business into a separate publicly traded company.

During the second quarter, reported revenues, loss from continuing operations and loss from continuing operations per diluted share from continuing operations were $1 billion, $12 million and $0.12, respectively. This compared to reported revenues of $978 million, income from continuing operations of $14 million and diluted EPS from continuing operations of $0.13 in the second quarter of 2017. Total second quarter 2018 adjusted EBITDA from continuing operations increased 7% to $243 million.

Looking Ahead

Wyndham Destinations is reaffirming its full-year 2018 revenue and further adjusted EBITDA guidance as follows:

  • Revenues of $3.975 billion to $4.085 billion
  • Further adjusted EBITDA of $955 million to $975 million

Wyndham Destinations is revising its further adjusted full-year 2018 net income and diluted EPS guidance as follows:

  • Further adjusted net income of $476 million to $496 million, compared to the previous expectation of $463 million to $483 million
  • Stock based compensation of $16 million to $20 million, compared to the previous expectation of $33 million to $37 million
  • Further adjusted diluted EPS of $4.74 to $4.94, compared to the previous expectation of $4.55 to $4.75, to reflect a lower share count of 101 million shares outstanding and lower stock based compensation

Leave A Reply