Press Release: Wyndham International
February 6, 2002
DALLAS, TX -- Wyndham International, Inc. (NYSE:WYN) yesterday reported results for the fourth quarter and full
year ending Dec. 31, 2001.
Business Performance
On a pro forma basis, which reflects adjustments for acquisitions and dispositions, earnings before interest, taxes,
depreciation and amortization (EBITDA), as adjusted, was $76.8 million for the fourth quarter versus $141.1 million
for the same period in 2000. For the year, pro forma EBITDA was $468.2 million versus $601.5 million for 2000.
The decline in EBITDA for both the quarter and the year reflects the impact of both the sluggish economy and the
events of September 11.
Total company comparable owned and leased RevPAR declined by 23.1% during the fourth quarter. This decline was
comprised of a 9.8% decline in rate, and 10-percentage point decline in occupancy. The comparable owned, leased
and managed Wyndham hotels and resorts faired slightly better, experiencing a decline of 22.5% in RevPAR. For the
full year 2001, total company comparable owned and leased RevPAR declined by 10.6%, and comparable owned, leased
and managed Wyndham hotels and resorts experienced a decline of 8.4%. Wyndham's RevPAR penetration grew versus
its competitive set based on Smith Travel statistics of the upper-upscale brands, which declined 12.3% for the
year. Wyndham's RevPAR penetration index continued to improve in its markets for the full year 2001. Wyndham reported
a pro forma net loss of $56.0 million for the fourth quarter. After the effect of the preferred dividend, this
resulted in a net loss of $0.57 per share on a fully diluted basis. For the full year 2001, the net loss and fully
diluted loss per share was $266.9 million and $1.59 per share respectively.
As of Dec. 31, 2001, cash and equivalents stood at $251.6 million, inclusive of $85.9 million of restricted cash.
During the quarter, debt increased by approximately $52.0 million due primarily to the finalization of the 2001
capital plan.
For the full year 2001 comparative owned and leased hotels' operating margins decreased 230 basis points, while
comparable owned, leased and managed Wyndham hotels and resorts decreased 100 basis points. Despite the drop in
demand the strong operating margins for the Wyndham brand are a direct result of cost containment programs initiated
early in the year.
``Although this year presented challenges that none of us anticipated we are pleased that Wyndham continued to
generate positive cash flow from operations. In addition, we were fortunate to have begun cost containment programs
at the initial signs of a sluggish economy, which enabled us to maintain strong operating margins,'' stated Fred
J. Kleisner, chairman and chief executive officer of Wyndham International, Inc.
Credit Facility
As announced on Jan. 25, 2002, Wyndham completed a successful amendment to its senior credit facilities providing
a permanent solution to issues created by the events of September 11.
The primary terms of the amendment are as follows:
``The resolution of our credit facility enables us to remain focused on our strategic plan to be a branded operating
company,'' added Kleisner. ``Our many accomplishments in 2001, from RevPAR penetration gains to the successful
launch of Wyndham ByRequest(SM), reflect the strong momentum behind the Wyndham brand. We enter 2002 knowing that
we need to remain nimble and guest-focused, with strong brand marketing, streamlined operations and motivated direct
sales force, to deliver the results we expect.''
Strategic Plan
Throughout 2001, Wyndham remained focused on its business plan; to that end, Wyndham closed on $212 million in
non-strategic asset sales during 2001. Additionally, Wyndham signed eight new management and three franchises agreements
for the brand. Additionally, the newly opened Golden Door® Spa at The Boulders -- A Wyndham Luxury Resort,
continues to have strong demand. The newly opened Wyndham Newark Airport strengthened the brand presence in another
key market.
2002 Business Outlook
Based on the company's current understanding of the economic and political situation, Wyndham expects its business
to rebound in the second half of the year; actual results may vary materially. The January 2002 booking trends
through Wyndham's central reservations office are positive, with the highest call volume since September 11. The
growth is fueled by demand for Wyndham Resorts, with weekly calls up 30% versus the prior year, reflective of the
current marketing campaign. Additionally, online bookings for January 2002 were up over 100% versus January 2001.
Assuming the economy takes the expected positive turn, Wyndham International forecasts full year EBITDA to be $470
million and RevPAR to be flat to slightly negative versus the prior year. For the first quarter 2002, EBITDA is
expected to be between $100 and $105 million and RevPAR down 15-18% versus 2001.
NYSE Notification
Prior to the completion of the bank amendment, the company received notification from the New York Stock Exchange
(NYSE) that it was not in compliance with the continued listing standard, as it relates to the average closing
price of the stock being below $1.00 for a consecutive thirty-day trading period. The company has met and presented
its business plan to the NYSE and will continue to work very closely with the exchange during the six-month cure
period, which is subject to certain conditions. The company is also evaluating its alternatives with regard to
complying with this standard.
Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging
brands and a management services division. Based in Dallas, Wyndham owns, leases, manages and franchises hotels
and resorts in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndham.com.
For reservations, call 800-WYNDHAM.
Cautionary Statement
This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating
results. The company's results could differ materially from those set forth in the forward-looking statements.
Certain factors that might cause a difference include, but are not limited to, risks associated with the availability
of equity or debt financing at terms and conditions favorable to Wyndham; risks associated with the course of litigation;
Wyndham's ability to effect sales of assets on favorable terms and conditions; Wyndham's ability to integrate acquisitions
into its operations and management; risks associated with the hotel industry and real estate markets in general;
competition within the lodging industry; the impact of general economic conditions; risks associated with debt
financing; the impact of terrorists' activity, threats of terrorist activity and responses thereto on the economy
in general and the travel and hotel industries in particular; and other risks and uncertainties set forth in the
company's annual, quarterly and current reports, and proxy statements.
WYNDHAM INTERNATIONAL, INC.
2001 OPERATING STATISTICS BY QUARTER
Quarter Ended December 31,
2001 2000 % Change
---- ---- --------
COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
Average daily rate $115.79 $127.29 -9.0%
Occupancy 56.4% 66.2% -980 ppt
RevPAR $65.35 $84.28 -22.5%
Wyndham Luxury Resorts (b)
Average daily rate $226.24 $276.16 -18.1%
Occupancy 54.5% 58.7% -420 ppt
RevPAR $123.30 $162.18 -24.0%
Summerfield by Wyndham
Average daily rate $105.82 $123.35 -14.2%
Occupancy 69.3% 78.3% -900 ppt
RevPAR $73.34 $96.63 -24.1%
Wyndham Garden
Average daily rate $81.94 $91.88 -10.8%
Occupancy 52.2% 64.1% -1190 ppt
RevPAR $42.76 $58.93 -27.4%
Twelve Months Ended December 31,
2001 2000 % Change
---- ---- --------
COMPARABLE WYNDHAM BRANDED HOTELS (a
Wyndham Hotels & Resorts
Average daily rate $130.25 $131.84 -1.2%
Occupancy 66.0% 71.2% -520 ppt
RevPAR $85.96 $93.83 -8.4%
Wyndham Luxury Resorts (b)
Average daily rate $247.11 $281.45 -12.2%
Occupancy 55.6% 58.6% -300 ppt
RevPAR $137.29 $164.69 -16.6%
Summerfield by Wyndham
Average daily rate $119.06 $123.91 -3.9%
Occupancy 77.2% 82.6% -540 ppt
RevPAR $91.93 $102.42 -10.2%
Wyndham Garden
Average daily rate $89.47 $89.93 -0.5%
Occupancy 60.7% 69.4% -870 ppt
RevPAR $54.29 $62.35 -12.9%
Quarter Ended December 31,
2001 2000 % Change
---- ---- --------
COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate $113.04 $127.38 -11.3%
Occupancy 58.8% 68.6% -980 ppt
RevPAR $66.47 $87.41 -24.0%
Non-Proprietary Branded (d)
Average daily rate $104.36 $112.55 -7.3%
Occupancy 56.8% 67.1% -1030 ppt
RevPAR $59.29 $75.49 -21.5%
Total Portfolio
Average daily rate $109.69 $121.63 -9.8%
Occupancy 58.0% 68.0% -1000 ppt
RevPAR $63.65 $82.73 -23.1%
Twelve Months Ended December 31,
2001 2000 % Change
---- ---- --------
COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate $127.37 $131.22 -2.9%
Occupancy 68.1% 74.1% -600 ppt
RevPAR $86.77 $97.22 -10.7%
Non-Proprietary Branded (d)
Average daily rate $109.97 $112.21 -2.0%
Occupancy 65.3% 71.4% -610 ppt
RevPAR $71.83 $80.16 -10.4%
Total Portfolio
Average daily rate $120.37 $123.56 -2.6%
Occupancy 67.0% 73.0% -600 ppt
RevPAR $80.61 $90.19 -10.6%
NOTE: All hotel statistics exclude assets sold to date.
(a) Brand statistics are based on comparable owned, managed and leased
hotels for respective periods.
(b) Reflects results of the Boulders, Carmel Valley Ranch, the Lodge
at Ventana Canyon, and Isla Navidad.
(c) Reflects Wyndham Hotels & Resorts, Wyndham Luxury Resorts,
Summerfield by Wyndham and Wyndham Garden Hotels that were branded as
of Jan. 1, 2000.
(d) Non-proprietary brand hotels owned by the Company as of Jan. 1,
2000.
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Quarter Ended
December 31,
-----------------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma (1) Pro Forma (1) Actual Actual
------------- ------------- ----------- -----------
Revenues:
Hotel revenues $ 442,414 $ 558,582 $ 442,969 $ 591,619
Management fees
and service fee
income 5,755 11,563 5,818 11,791
Interest and
other income 2,351 2,005 2,354 4,098
------------- ------------- ----------- -----------
Total revenues 450,520 572,150 451,141 607,508
------------- ------------- ----------- -----------
Expenses:
Hotel expenses 357,327 418,554 357,785 437,048
General and
administrative
costs 17,659 17,357 17,726 19,512
Interest expense 75,627 89,399 76,459 91,232
------------- ------------- ----------- -----------
Total operating
costs and
expenses 450,613 525,310 451,970 547,792
------------- ------------- ----------- -----------
Revenues net of
direct expenses (93) 46,840 (829) 59,716
Non-recurring charges:
Restructuring
expenses and
strategic
reorganization -- (192) -- (192)
Interstate
spin-off costs -- 171 -- 171
Professional fees
and other 2,897 10,414 2,897 10,414
Abandoned
transaction costs 2,414 922 2,414 922
Pre-opening and
conversion costs 3,495 (2,960) 3,495 (2,960)
Gain on derivative
instruments (5,893) -- (5,893) --
Impairment of
assets held for
sale 24,159 230,167 24,159 230,168
(Gain) loss on
sale of assets (3,436) 8,240 (3,436) 8,240
Write-off of
management,
leasehold costs
and license
agreements 4,204 45,174 4,204 45,174
------------- ------------- ----------- -----------
Total
non-recurring
charges 27,840 291,936 27,840 291,937
------------- ------------- ----------- -----------
Depreciation and
amortization 77,044 68,038 77,036 66,707
Equity in Earnings
from
unconsolidated
subs (369) (14,004) (369) 2,996
Minority interest
in consolidated
subsidiaries 1,553 (1,530) 1,553 1,751
------------- ------------- ----------- -----------
78,228 52,504 78,220 71,454
------------- ------------- ----------- -----------
Loss before income
taxes (106,161) (297,600) (106,889) (303,675)
Benefit for income
taxes (50,203) (136,488) (49,807) (133,263)
------------- ------------- ----------- -----------
Net loss $ (55,958) $ (161,112) $ (57,082) $ (170,412)
============= ============= =========== ===========
EBITDA, as
adjusted $ 76,752 $ 141,065 $ 75,222 $ 153,032
============= ============= =========== ===========
(1) The Comparable Pro Forma financial statements have been adjusted
to remove the operations of hotels sold and related interest expense
from corresponding retired debt and management contract revenue from
terminated management contracts.
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Quarter Ended
December 31,
-----------------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma Pro Forma Actual Actual
------------- ------------- ----------- -----------
EBITDA Reconciliation
Net loss $ (55,958) $ (161,112) $ (57,082) $ (170,412)
Interest expense 75,627 89,399 76,459 91,232
Depreciation and
amortization 77,044 68,038 77,036 66,707
Benefit for income
taxes (50,203) (136,488) (49,807) (133,263)
------------- ------------- ----------- -----------
EBITDA 46,510 (140,163) 46,606 (145,736)
Interest,
depreciation and
amortization from
equity interest
in unconsolidated
subsidiaries 3,434 (7,157) 1,805 9,335
Interest,
depreciation and
amortization
attributable to
minority interests (769) (4,006) (766) (2,958)
Restructuring
expenses and
strategic
reorganization -- (192) -- (192)
Interstate
spin-off costs -- 171 -- 171
Professional fees
and other 2,897 10,414 2,897 10,414
Abandoned
transaction costs 2,414 922 2,414 922
Pre-opening and
conversion costs 3,495 (2,960) 3,495 (2,960)
Amortization of
unearned
compensation 654 454 654 454
Gain on derivative
instruments (5,893) -- (5,893) --
Impairment of
assets held for
sale 24,159 230,168 24,159 230,168
Gain on sale of
assets (3,436) 8,240 (3,436) 8,240
Write-off of
management,
leasehold costs
and license
agreements 3,287 45,174 3,287 45,174
------------- ------------- ----------- -----------
EBITDA, as
adjusted $ 76,752 $ 141,065 $ 75,222 $ 153,032
============= ============= =========== ===========
Per Share Calculations:
Net loss $ (55,958) $ (161,112) $ (57,082) $ (170,412)
Adjustment for
preferred stock (39,587) (26,554) (39,587) (26,554)
------------- ------------- ----------- -----------
Net loss
attributable
to common
shareholders $ (95,545) $ (187,666) $ (96,669) $ (196,966)
============= ============= =========== ===========
Net loss per share:
Basic $ (0.57) $ (1.12) $ (0.58) $ (1.18)
Diluted $ (0.57) $ (1.12) $ (0.58) $ (1.18)
Basic weighted
average common
shares and share
equivalents 167,860 167,416 167,860 167,416
Diluted weighted
average common
shares and share
equivalents 167,860 167,416 167,860 167,416
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Twelve Months Ended
December 31,
-----------------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma (1) Pro Forma (1) Actual Actual
------------- ------------- ----------- -----------
Revenues:
Hotel revenues $ 2,014,947 $ 2,249,653 $ 2,068,723 $ 2,421,603
Management fees
and service fee
income 22,917 35,590 26,451 46,028
Interest and other
income 9,859 28,358 10,256 30,964
------------- ------------- ----------- -----------
Total revenues 2,047,723 2,313,601 2,105,430 2,498,595
------------- ------------- ----------- -----------
Expenses:
Hotel expenses 1,515,903 1,630,052 1,557,985 1,750,035
General and
administrative
costs 59,824 66,316 59,910 70,776
Interest expense 320,883 355,473 323,898 371,855
------------- ------------- ----------- -----------
Total operating
costs and
expenses 1,896,610 2,051,841 1,941,793 2,192,666
------------- ------------- ----------- -----------
Revenues net of
direct expenses 151,113 261,760 163,637 305,929
Non-recurring charges:
Reductions in
reservation and
marketing funds 5,239 -- 5,239 --
Restructuring
expenses and
strategic
reorganization -- 251 -- 251
Interstate spin-off
costs -- 899 -- 899
Professional fees
and other 14,489 19,370 14,489 22,035
Abandoned
transaction costs 3,921 3,255 3,921 3,933
Pre-opening and
conversion costs 12,819 (2,953) 12,819 (2,563)
Loss on derivative
instruments 16,125 -- 16,125 --
Impairment of
assets held for
sale 24,159 441,484 24,159 441,484
Loss on sale of
assets 11,202 12,987 11,202 12,987
Write-off of
management,
leasehold costs
and license
agreements 21,988 47,622 21,988 47,622
------------- ------------- ----------- -----------
Total
non-recurring
charges 109,942 522,915 109,942 526,648
------------- ------------- ----------- -----------
Depreciation and
amortization 254,712 285,606 254,209 304,785
Equity in earnings
from
unconsolidated
subsidiaries (3,682) (13,079) (3,500) (2,491)
Minority interest
in consolidated
subsidiaries 6,778 845 10,060 7,569
------------- ------------- ----------- -----------
257,808 273,372 260,769 309,863
------------- ------------- ----------- -----------
Loss before
income taxes (216,637) (534,527) (207,074) (530,582)
Benefit for
income taxes (84,028) (216,404) (80,337) (205,912)
Accounting change,
net of applicable
taxes 10,364 -- 10,364 --
Extraordinary item,
net of taxes 1,838 -- 1,838 --
------------- ------------- ----------- -----------
Net loss $ (144,811) $ (318,123) $ (138,939) $ (324,670)
============= ============= =========== ===========
EBITDA, as
adjusted $ 468,176 $ 601,452 $ 479,981 $ 659,172
============= ============= =========== ===========
(1) The Comparable Pro Forma financial statements have been adjusted
to remove the operations of hotels sold and related interest expense
from corresponding retired debt and management contract revenue from
terminated management contracts.
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Twelve Months Ended
December 31,
-----------------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma Pro Forma Actual Actual
------------- ------------- ----------- -----------
EBITDA Reconciliation
Net loss $ (144,811) $ (318,123) $ (138,939) $ (324,670)
Extraordinary item,
net of taxes 1,838 -- 1,838 --
Interest expense 320,883 355,473 323,898 371,855
Depreciation and
amortization 254,712 285,606 254,209 304,785
Benefit for income
taxes (84,028) (216,404) (80,337) (205,912)
Cumulative effect
of accounting
change 10,364 -- 10,364 --
------------- ------------- ----------- -----------
EBITDA 358,958 106,552 371,033 146,058
Interest,
depreciation and
amortization from
equity interest
in unconsolidated
subsidiaries 5,412 (3,972) 5,670 11,516
Interest,
depreciation and
amortization
attributable to
minority interests (3,634) (10,726) (4,162) (11,733)
Reduction in
reservation and
marketing funds 5,239 -- 5,239 --
Restructuring
expenses and
strategic
reorganization -- 251 -- 251
Interstate
spin-off costs -- 899 -- 899
Professional fees
and other 14,489 19,370 14,489 22,035
Abandoned
transaction costs 3,921 3,255 3,921 3,933
Pre-opening and
conversion costs 12,819 (2,953) 12,819 (2,563)
Amortization of
unearned
compensation 2,104 1,161 2,104 1,161
Loss on derivative
instruments 16,125 -- 16,125 --
Impairment of assets
held for sale 24,159 441,484 24,159 441,484
Bedrock
termination fees -- (14,478) -- (14,478)
Non-recurring fees
included in
general and
administrative
costs 916 -- 916 --
Loss on sale of
assets 11,202 12,987 11,202 12,987
Write-off of
management,
leasehold costs
and license
agreements 16,466 47,622 16,466 47,622
------------- ------------- ----------- -----------
EBITDA, as
adjusted $ 468,176 $ 601,452 $ 479,981 $ 659,172
============= ============= =========== ===========
Per Share Calculations:
Net loss $ (144,811) $ (318,123) $ (138,939) $ (324,670)
Adjustment for
preferred stock (122,116) (103,522) (122,116) (103,522)
------------- ------------- ----------- -----------
Net loss
attributable to
common
shareholders $ (266,927) $ (421,645) $ (261,055) $ (428,192)
============= ============= =========== ===========
Net loss per share:
Basic $ (1.59) $ (2.52) $ (1.56) $ (2.56)
Diluted $ (1.59) $ (2.52) $ (1.56) $ (2.56)
Basic weighted
average common
shares and share
equivalents 167,698 167,308 167,698 167,308
Diluted weighted
average common
shares and share
equivalents 167,698 167,308 167,698 167,308
---------------------------------------------------
Contact:
Wyndham International
Analyst Inquiries:
Elizabeth Williams, 214/863-1389
ewilliams@wyndham.com
or
Media Inquiries:
Andrew Jordan, 214/863-1360
ajordan@wyndham.com