This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Wyndham Worldwide Management Discusses Q2 2012 Results - Earnings Call Transcript

Stock quotes in this article: WYN

Stephen P. Holmes

Thanks, Margo, and good morning, everyone. I'm pleased to report we had another great quarter as we continue to execute at a high level in an uncertain global economic environment. Second quarter revenues increased by over 4% and adjusted EBITDA was up over 10%. Adjusted EPS was up 36% and came in $0.02 above the top end of our guidance range.

Wyndham Hotel Group and Wyndham Vacation Ownership each delivered double-digit EBITDA growth. I'm also pleased with the efforts of our Wyndham Exchange and Rental teams, which was in line with our expectations, producing stable results despite the economic challenges in Europe and limited growth in the broader timeshare industry.

We continue to deploy capital to drive value for our shareholders. So far this year, we've spent nearly $70 million [ph] on dividends and $400 million on share repurchases. Our second quarter weighted average diluted share count decreased by $23 million from the same period last year. From our inception as a private company on August 1, 2006 through yesterday, we repurchased 73.8 million shares at an average price of $32.60 per share.

Equally important for long-term shareholder value is our ongoing commitment to invest in our business to drive earnings growth and increased cash flow in the years to come. Our baseline sustainable free cash flow guidance of $600 million to $700 million assumes CapEx of approximately $200 million, about half of which is used to fund growth projects such as Apollo and our hotel business; rci.com and Vacation Rentals reservation and website integration in our Exchange and Rental business; and Voyager, a program to optimize our reservation system in our Vacation Ownership business. We also continued to selectively evaluate the potential acquisitions, which we will only pursue if they're strategically and economically compelling.

Now moving to our business unit review. The Wyndham Hotel Group had another great quarter, with adjusted EBITDA growth of 12% and domestic RevPAR gains of nearly 8%. We made some significant development headway in the second quarter, many a [ph] deal with Hospitality Properties Trust or HPT, a 20-hotel portfolio comprising 3,000 rooms throughout the U.S. All of the properties will be rebranded as Wyndham Hotels, with the remaining 16 properties to be rebranded Hawthorn Suites. The conversions are scheduled to occur next week, providing growth for 2 of our brands and adding 20 properties to our managed portfolio. We are pleased to partner with HPT and hope to work more closely with them in the years to come. We look forward to updating you on similar deals going forward.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,863.98 -178.92 -1.05%
S&P 500 1,958.23 -14.06 -0.71%
NASDAQ 4,447.3480 -46.0420 -1.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs