Wyndham Worldwide Corporation (NYSE:WYN), whose Wyndham Hotel Group encompasses more than 7,170 hotels with approximately 608,300 rooms worldwide, reported strong second quarter earnings July 26 as consumers continue to travel and seek Wyndham's "diversified product offerings."
Wyndham showed $281 million in EBITDA for the second quarter ending June 30, a 10 percent year-over-year increase in cash flow, on $1.1 billion in second-quarter revenue, according to the company's July 26 earnings release. Overall, company revenue was up 4 percent for the quarter, and second-quarter adjusted diluted earnings per share (EPS) was $0.87, compared with $0.64 in the second quarter of 2011, an increase of 36 percent.
According to Wyndham, the company's revenue gains "reflected growth in our Lodging and Vacation Ownership businesses partially offset by unfavorable currency movements in our Vacation Exchange and Rentals business."
"In the first half of 2012 we achieved back-to-back 36 percent increases in quarterly adjusted EPS growth in an economic environment that remains uncertain," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "Underlying this growth is strong execution from each of our businesses and diversified product offerings well positioned to capitalize on consumers' desire to travel. In addition, we benefited from capital allocation that included the return of capital to shareholders."
For the second quarter of 2012, adjusted net income was $128 million, or $0.87 per diluted share, compared with $108 million, or $0.64 per diluted share for the same period in 2011. Again, Wyndham said the increase in adjusted net income primarily reflected stronger operating results in the company's Lodging and Vacation Ownership businesses. The increase in EPS also benefited from our share repurchase program, which decreased Wyndham's weighted average share count by 14%.
Wyndham's Vacation Exchange and Rentals unit generated $348 for the quarter, down from $361 million the previous year, while the company's timeshare division (Wyndham Vacation Ownership) showed a 5 percent in revenues to $570 million. The timeshare revenue gains reflected "increased vacation ownership interest (VOI) sales."
Gross VOI sales were $460 million in the second quarter of 2012, up 12 percent from the second quarter of 2011, primarily reflecting a 6 percent increase in volume per guest and a 5 percent increase in tour flow. Adjusted EBITDA for the second quarter of 2012 was $150 million, a 15 percent increase compared with the second quarter of 2011, primarily reflecting contributions from increased VOI sales.
Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 27,800 employees globally.