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Wyndham Worldwide Corp. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: April 25, 2012 10:04AM
Wyndham Worldwide Corp. (WYN) filed Quarterly Report for the period ended 2012-03-31. Wyndham Worldwd has a market cap of $6.95 billion; its shares were traded at around $48.96 with a P/E ratio of 19.1 and P/S ratio of 1.6. The dividend yield of Wyndham Worldwd stocks is 1.9%. Wyndham Worldwd had an annual average earning growth of 7.3% over the past 5 years.
Highlight of Business Operations:Total expenses increased $58 million (7.3%) for the three months ended March 31, 2012 compared with the same period last year principally reflecting (i) $67 million of higher expenses from our operations resulting from the revenue increases and (ii) $7 million of incremental expenses associated with acquisitions, partially offset by the absence of a $13 million non-cash impairment charge in our lodging business recorded during the first quarter of 2011.
Net revenues increased $36 million (24.2%) and EBITDA increased $22 million (81.5%) during the first quarter of 2012 compared to the same period last year. Excluding the impact of a $13 million non-cash impairment charge during the first quarter of 2011, EBITDA increased $9 million (22.5%) compared to the same period last year.
Net revenues and EBITDA increased $5 million (1.4%) and $2 million (2.2%), respectively, during the first quarter of 2012 compared with the first quarter of 2011. A stronger U.S. dollar compared to other foreign currencies unfavorably impacted net revenues and EBITDA by $6 million and $1 million, respectively.
Net revenues and EBITDA from consumer financing were flat compared to the same period in the prior year. Net interest income margin remained flat versus the first quarter of 2011 due to (i) a reduction in our weighted average interest rate on our securitized debt to 5.0% from 6.0% and (ii) higher weighted average interest rates earned on our contract receivable portfolio, offset by $135 million of increased average borrowings on our securitized debt facilities.
In addition, we spent $7 million relating to vacation ownership development projects (inventory) during the three months ended March 31, 2012. We anticipate spending on average approximately $150 million annually from 2011 through 2015 on vacation ownership development projects (approximately $110 million to $120 million during 2012), including projects currently under development. We believe that our vacation ownership business currently has adequate finished inventory on our balance sheet to support vacation ownership sales. After factoring in the anticipated additional average spending of approximately $150 million annually from 2011 through 2015, we expect to have adequate inventory through at least the next 4 to 5 years.
Stocks Discussed: WYN,