shares lost ground Tuesday even though the company reported a narrower third-quarter loss on stronger revenue. The Dallas-based luxury hotel company also announced the departure of four executives as it continues its program of shedding assets and paying down debt.
Wyndham reported a net loss of $58.1 million, or 35 cents a share, less than half the $128.4 million, or 76 cents a share, the company lost a year earlier. The third-quarter loss included $42.4 million Wyndham paid in dividends to preferred shareholders. Preferred dividend payments totaled $39.3 million a year earlier.
Revenue came in at $204.4 million, up 12% from $181.8 million in the third quarter of 2003. No Wall Street analysts provide estimates for Wyndham's earnings and revenue, according to Thomson First Call. Revenue per available room, a key industry metric also known as revpar, increased 3.7% at Wyndham's comparable owned and leased hotels, in line with the company's previous guidance.
Shares fell 7 cents, or $8.0%, to 81 cents.
"Wyndham experienced positive business performance in key markets throughout the U.S., including Boston, Washington, D.C., Chicago and Dallas," said Fred Kleisner, the company's chief executive, in a news release.
During the latest quarter, Wyndham sold six properties for $249.5 million and used the proceeds to pay down debt. After the quarter ended, Wyndham closed the sale of 10 more properties for gross proceeds of $93.9 million.
The company's total debt stood at $2.25 billion at the end of the third quarter, down from $2.50 billion at the end of June.
The company also announced four executive departures it said were related to efforts to shed assets and emerge as a leaner company. Leaving the company are Ted Teng, president and chief operating officer, who will not be replaced; Joseph Champ, executive vice president and chief investment officer; Patricia Smith, executive vice president of human resources; and Donna DeBerry, executive vice president of diversity and corporate affairs. Kleisner, the CEO, will assume Teng's duties, and DeBerry will continue to work with the company as a consultant.
Looking ahead, Wyndham reiterated full-year EBITDA (earnings before interest, taxes, depreciation and amortization) guidance, as adjusted for asset sales, of between $265 million and $275 million. It also maintained full-year revpar growth of between 6.0% to 7.0%.