Wyndham Sees Drop in Third Quarter Revenues, Net Income

Wyndham Worldwide Corporation, joining many other hotel companies in reporting lower third quarter results, said it had revenues of $1,016 million during the quarter, down 17 percent from the prior-year period due to a previously announced initiative to reduce the deployment of capital in the company’s vacation ownership business, continued weakness in the global lodging industry, and unfavorable foreign exchange rate movements which negatively impacted the company’s exchange and rentals business.

Net income for the third quarter was $104 million, or $0.57 diluted EPS, compared with net income of $142 million, or $0.80 diluted EPS, in the same quarter last year. Adjusted net income for the third quarter of 2009 was $106 million, or $0.58 diluted adjusted EPS, compared with third quarter 2008 adjusted net income of $148 million, or $0.83 diluted adjusted EPS.

Third quarter 2009 includes the after-tax impact of $2 million, or $0.01 diluted EPS, of legacy items. Third quarter 2008 net income includes the after-tax impact of $6 million, or $0.03 diluted EPS, of restructuring costs and legacy items.

But Wyndham also said it generated higher diluted adjusted earnings per share (EPS) of $0.58, compared with company-issued guidance of $0.53 to $0.57. Reported EPS was $0.57.

The company also raised full-year 2009 adjusted EBITDA guidance to $775-$825 million, compared with prior guidance of $760-$810 million. For the nine months ended Sept. 30, 2009, the company generated net cash from operating activities of approximately $570 million, compared with $146 million in 2008.