Wyndham Worldwide Corporation reported revenues for the third quarter of 2008 were $1.2 billion, up 1 percent compared to the third quarter of 2007. The company also reported year-over-year EBITDA growth in each of its three business units during the third quarter of 2008. Reported net income for the third quarter of 2008 was $142 million, or $0.80 diluted earnings per share, compared to $117 million, or $0.65 diluted earnings per share, for the third quarter of 2007. Excluding $2 million in after-tax net expense from the resolution of, and adjustment to, certain legacy items and $4 million in after-tax restructuring costs, adjusted net income for the third quarter of 2008 would have been $148 million, or $0.83 adjusted diluted earnings per share, an 11 percent increase compared to adjusted net income of $134 million, or adjusted diluted earnings per share of $0.75, in the third quarter of 2007. Adjusted net income in the third quarter of 2007 excludes $2 million in after-tax separation and related costs and $15 million in after-tax net expense from the resolution of, and adjustment to, certain legacy items. For Wyndham Hotel Group, revenues were $213 million in the third quarter of 2008, up $2 million, or 1 percent, when compared with the third quarter of 2007. Higher revenues resulting from the Microtel and Hawthorn brands acquisition and incremental properties were partially offset by a decline in worldwide RevPAR. System-wide RevPAR decreased 2.7 percent in the third quarter of 2008, reflecting 4.2 percent and 1.7 percent declines in domestic and international RevPAR, respectively. Third quarter 2008 EBITDA grew 3 percent to $72 million, compared to $70 million in the third quarter of 2007. This increase was driven by cost containment initiatives, the Microtel and Hawthorn brands acquisition, a one-time benefit resulting from the sale of a non-strategic asset and lower marketing expenses due to timing, which were partially offset by $4 million in restructuring costs. As of Sept. 30, 2008, the company’s hotel system consisted of 6,970 properties and approximately 583,400 rooms, of which 20 percent were international, with a development pipeline of approximately 990 hotels and more than 111,000 rooms, of which 51 percent were new construction and 41 percent were international. |