ORLANDO, FL—Wyndham Destinations Inc., the world’s largest vacation ownership and exchange company, reported reported strong third quarter 2018 financial results.
“Our company reported another outstanding quarter, demonstrated by strong operational results that came in above expectations,” said Michael D. Brown, president/CEO of Wyndham Destinations. “During the third quarter, gross VOI sales increased 7%, further adjusted EBITDA increased 5% and we maintained margins while we continue to track ahead on new owner sales mix, which increased 330 basis points in the third quarter. We also meaningfully increased the pace of share buybacks in the third quarter, repurchasing $106 million in stock.”
Income from continuing operations increased 28% to $131 million and diluted earnings per share (EPS) from continuing operations increased 32% to $1.31. Adjusted EBITDA increased 6% to $269 million.
Further adjusted EBITDA increased 5% to $271 million, compared to guidance of $262 million to $272 million, while further adjusted diluted EPS increased 15% to $1.47, compared to guidance of $1.37 to $1.47.
Revised full-year further adjusted EBITDA guidance to a range of $952 million to $960 million to reflect the impact from hurricanes Florence and Michael and stronger operating performance in the third quarter of 2018.
“As we have demonstrated this quarter, Wyndham Destinations continued to execute upon our key strategic initiatives, which included increasing our new owner sales mix and further integration with the Blue Thread, all while preserving our margins,” said Brown. “Our elevated level of share repurchases in the third quarter underscored our commitment of returning value to shareholders.”
In May 2018, the company sold its European vacation rentals business and completed the spin-off of its hotel business into a separate publicly traded company. For all periods presented, the results of operations for the hotel business and the European vacation rentals business have been classified as discontinued operations.