Press Release: Wyndham International, Inc.
August 8, 2001
DALLAS, TX -- Wyndham International, Inc. (NYSE:WYN - news) today reported results for the second quarter ending
June 30, 2001, including the following:
Wyndham reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $151.9 million,
with 22 fewer hotels, compared to $182.3 million for the same quarter last year. The Company reported a net loss
of $12.3 million, compared to $46.5 million in the second quarter 2000. After the effect of the preferred dividend,
this resulted in a loss of $0.24 per share (diluted), compared with a loss of $0.43 per share (diluted) in the
second quarter 2000.
``Given the impact of the economic downturn on the entire lodging industry, we have taken decisive steps in cost
containment and revenue generation while not compromising customer service,'' said Fred J. Kleisner, chairman and
CEO of Wyndham International. ``The Company's performance in the second quarter is commendable and reflects the
quality of Wyndham's management team.''
On a comparable pro forma basis, which reflects adjustments for asset acquisitions and dispositions, EBITDA, as
adjusted, was $147.3 million in the second quarter of 2001, down from $162.5 million in the same period a year
ago. The corresponding pro forma net loss was $15.5 million, or $0.26 per share (diluted), compared with a pro
forma net loss of $54.6 million, or $0.48 per share (diluted), for the same quarter last year.
Cost Containment Initiatives and Margins
Implementation of the previously announced contingency plans for cost reduction in Wyndham's corporate office as
well as its hotels were finalized by early July. In June, the effect of these measures resulted in dramatically
improved gross operating profit margins versus the first two months of the quarter. The gross operating profit
margins for the Wyndham branded owned and leased portfolio increased 150 basis points (bps) in June versus a decrease
of 100 bps for the full quarter as compared to the prior year.
The gross operating profit margins for the owned and leased Wyndham International portfolio reflected an increase
in the month of June of 150 bps and a decrease for the full quarter of 100 bps as compared to the prior year.
Wyndham expects that the positive margin improvement reported in June will continue for the remainder of the year
and that gross operating profit margins for the full year will reflect an increase of 100 bps. The Company is prepared
to implement further cost containment programs as economic trends dictate.
RevPAR and Market Penetration
On a comparable owned and leased basis, second quarter revenue per available room (RevPAR) for Wyndham branded
hotels decreased 5.4% over a year ago, while the Company's total owned and leased portfolio experienced a 5.3%
drop, which is mainly attributable to a 410 basis point decline in occupancy, with average daily rate (ADR) remaining
flat to the previous year. On a market-by-market basis, Wyndham branded hotels continue to increase their market
share versus its competitive sets, despite the negative RevPAR results. This is attributable to several brand initiatives
including Wyndham ByRequest, its guest recognition program.
``We are especially pleased with our progress in gaining RevPAR penetration against our competitors,'' added Kleisner.
``Our management team remains focused on our three-year operating plan.''
Asset Disposition Update
The Company continues to make progress with its three-year plan to focus on proprietary branded operations. For
the quarter, the Company sold $164.5 million in non-strategic assets, for a total of $194.8 million year to date.
All of the net cash proceeds from these sales were used to reduce debt. The Company remains on track to exceed
its goal of $500 million in non-strategic asset sales for 2001.
In addition, consistent with its strategy to grow through the addition of franchise and management contracts, Wyndham
has signed two new management contracts and one new franchise agreement as well as four, five-year management extensions
year to date.
About Wyndham International
Wyndham International, Inc. (NYSE:WYN) offers upscale and luxury hotel and resort accommodations through proprietary
lodging brands and a management services division. Based in Dallas, Wyndham International 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; and other risks and uncertainties set forth in the company's annual, quarterly and current reports and
proxy statements.
Tables follow...
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Quarter Ended
June 30,
-------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma Pro Forma Actual Actual
-------------------------------------------
Revenues:
Hotel revenues $ 560,319 $ 588,571 $ 581,080 $ 632,012
Management fees and
service fee income 6,105 7,511 6,282 12,422
Interest and other income 1,782 18,533 1,782 18,561
--------- --------- --------- ---------
Total revenues 568,206 614,615 589,144 662,995
--------- --------- --------- ---------
Expenses:
Hotel expenses 403,694 418,556 419,680 448,142
General and administrative
costs 16,437 17,379 16,437 17,428
Interest expense 82,330 91,036 82,743 93,427
--------- --------- --------- ---------
Total operating costs
and expenses 502,461 526,971 518,860 558,997
--------- --------- --------- ---------
Excess revenues over
direct expenses 65,745 87,644 70,284 103,998
Non-recurring charges:
Restructuring expenses and
strategic reorganization
costs -- (1,054) -- (1,054)
Non-recurring professional
fees and other (6,770) (7,285) (6,770) (7,285)
Abandoned transaction costs (380) (1,407) (380) (1,407)
Pre-opening expenses (7,449) 302 (7,449) 302
Gain on derivative
instruments 6,074 -- 6,074 --
Impairment of assets held
for sale -- (77,300) -- (77,300)
Loss on sale of assets (13,259) (10,844) (13,259) (10,844)
--------- --------- --------- ---------
Total non-recurring
charges (21,784) (97,588) (21,784) (97,588)
Depreciation and
amortization (62,352) (73,505) (62,230) (78,996)
Equity in earnings (loss)
from unconsolidated
subsidiaries 598 (522) 1,216 3,479
Minority interest in
consolidated subsidiaries (2,106) (201) (2,106) (1,052)
--------- --------- --------- ---------
Loss before income taxes (19,899) (84,172) (14,620) (70,159)
Benefit for income taxes (5,147) (29,587) (3,035) (23,642)
Extraordinary item, net
of applicable taxes 719 -- 719 --
--------- --------- --------- ---------
Net loss $ (15,471) (54,585) $ (12,304) $ (46,517)
========= ========= ========= =========
EBITDA, as adjusted $ 147,329 $ 162,497 $ 151,849 $ 182,269
========= ========= ========= =========
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Quarter Ended
June 30,
-------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma Pro Forma Actual Actual
-------------------------------------------
EBITDA Reconciliation
Net loss $ (15,471) $ (54,585) $ (12,304) $ (46,517)
Interest expense 82,330 91,036 82,743 93,427
Depreciation and
amortization 62,352 73,505 62,230 78,996
Benefit for income taxes (5,147) (29,587) (3,035) (23,642)
Extraordinary item, net
of applicable taxes 719 -- 719 --
--------- --------- --------- ---------
EBITDA 124,783 80,369 130,353 102,264
Interest, depreciation and
amortization from equity
interest in unconsolidated
subsidiaries 561 1,511 1,887 348
Interest, depreciation and
amortization attributable
to minority interests (854) (2,820) (3,230) (3,780)
Restructuring expenses and
strategic reorganization
costs -- 1,054 -- 1,054
Non-recurring professional
fees and other 6,770 7,285 6,770 7,285
Abandoned transaction costs 380 1,407 380 1,407
Pre-opening expenses 7,449 (302) 7,449 (302)
Amortization of unearned
compensation 712 327 712 327
Gain on derivative
instruments (6,074) -- (6,074) --
Impairment of assets held
for sale -- 77,300 -- 77,300
Bedrock termination fees -- (14,478) -- (14,478)
Non-recurring fees
included in G&A 343 -- 343 --
Loss on sale of assets 13,259 10,844 13,259 10,844
--------- --------- --------- ---------
EBITDA, as adjusted $ 147,329 $ 162,497 $ 151,849 $ 182,269
========= ========= ========= =========
Per Share Calculations:
Net loss $ (15,471) $ (54,585) $ (12,304) $ (46,517)
Adjustment for preferred
stock (27,506) (25,652) (27,506) (25,652)
--------- --------- --------- ---------
Net loss attributable
to common shareholders $ (42,977) $ (80,237) $ (39,810) $ (72,169)
========= ========= ========= =========
Net loss per share:
Basic $ (0.26) $ (0.48) $ (0.24) $ (0.43)
Diluted $ (0.26) $ (0.48) $ (0.24) $ (0.43)
Basic weighted average
common shares and share
equivalents 167,698 167,250 167,698 167,250
Diluted weighted average
common shares and share
equivalents 167,698 167,250 167,698 167,250
WYNDHAM INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Six Months Ended
June 30,
-------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma Pro Forma Actual Actual
-------------------------------------------
Revenues:
Hotel revenues $1,142,192 $1,176,103 $1,185,837 $1,269,073
Management fees and
service fee income 13,906 15,276 14,202 25,022
Interest and other income 5,073 22,181 5,461 22,526
--------- --------- --------- ---------
Total revenues 1,161,171 1,213,560 1,205,500 1,316,621
--------- --------- --------- ---------
Expenses:
Hotel expenses 812,578 825,934 845,286 888,918
General and administrative
costs 26,376 32,794 26,376 35,066
Interest expense 167,306 179,756 168,687 185,290
--------- --------- --------- ---------
Total operating costs
and expenses 1,006,260 1,038,484 1,040,349 1,109,274
--------- --------- --------- ---------
Excess revenues over
direct expenses 154,911 175,076 165,151 207,347
Non-recurring charges:
Restructuring expenses and
strategic reorganization
costs -- (4,383) -- (4,383)
Non-recurring professional
fees and other (9,270) (7,285) (9,270) (7,285)
Abandoned transaction costs (582) (1,569) (582) (1,569)
Pre-opening expenses (8,109) (216) (8,109) (463)
Gain on derivative
instruments 15,676 -- 15,676 --
Impairment of assets
held for sale -- (77,300) -- (77,300)
Loss on sale of assets (12,923) (13,755) (12,923) (14,052)
--------- --------- --------- ---------
Total non-recurring
charges (15,208) (104,508) (15,208) (105,052)
Depreciation and
amortization (117,574) (145,557) (117,072) (158,447)
Equity in earnings (loss)
from unconsolidated
subsidiaries 1,274 (837) 1,597 3,969
Minority interest in
consolidated subsidiaries (3,670) (1,348) (6,952) (3,434)
--------- --------- --------- ---------
Income (loss) before
income taxes 19,733 (77,174) 27,516 (55,617)
Provision (benefit) for
income taxes 11,795 (30,154) 16,221 (20,697)
Extraordinary item, net of
applicable taxes 719 -- 719 --
Accounting change,
net of taxes 10,364 -- 10,364 --
--------- --------- --------- ---------
Net (loss) income $ (3,145) $ (47,020) $ 212 $ (34,920)
========= ========= ========= =========
EBITDA, as adjusted $ 320,901 $ 336,328 $ 329,596 $ 373,845
========= ========= ========= =========
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Six Months Ended
June 30,
-------------------------------------------
2001 2000 2001 2000
Comparable Comparable
Pro Forma Pro Forma Actual Actual
-------------------------------------------
EBITDA Reconciliation
Net (loss) income $ (3,145) $ (47,020) $ 212 $ (34,920)
Accounting change,
net of taxes 10,364 -- 10,364 --
Interest expense 167,306 179,756 168,687 185,290
Depreciation and
amortization 117,574 145,557 117,072 158,447
Provision (benefit) for
income taxes 11,795 (30,154) 16,221 (20,697)
Extraordinary item, net
of applicable taxes 719 -- 719 --
--------- --------- --------- ---------
EBITDA 304,613 248,139 313,275 288,120
Interest, depreciation and
amortization from equity
interest in unconsolidated
subsidiaries 2,072 2,247 2,788 656
Interest, depreciation and
amortization attributable
to minority interests (2,110) (4,792) (2,793) (6,209)
Restructuring expenses and
strategic reorganization
costs -- 4,383 -- 4,383
Non-recurring professional
fees and other 9,270 7,285 9,270 7,285
Abandoned transaction costs 582 1,569 582 1,569
Pre-opening expenses 8,109 216 8,109 463
Amortization of unearned
compensation 775 704 775 704
Gain on derivative
instruments (15,676) -- (15,676) --
Impairment of assets held
for sale -- 77,300 -- 77,300
Bedrock termination fees -- (14,478) -- (14,478)
Non-recurring fees
included in G&A 343 -- 343 --
Loss on sale of assets 12,923 13,755 12,923 14,052
--------- --------- --------- ---------
EBITDA, as adjusted $ 320,901 $ 336,328 $ 329,596 $ 373,845
========= ========= ========= =========
Per Share Calculations:
Net (loss) income $ (3,145) $ (47,020) $ 212 $ (34,920)
Adjustment for preferred
stock (54,531) (50,867) (54,531) (50,867)
--------- --------- --------- ---------
Net loss attributable to
common shareholders $ (57,676) $ (97,887) $ (54,319) $ (85,787)
========= ========= ========= =========
Net loss per share:
Basic $ (0.34) $ (0.59) $ (0.32) $ (0.51)
Diluted $ (0.34) $ (0.59) $ (0.32) $ (0.51)
Basic weighted average
common shares and share
equivalents 167,559 167,227 167,559 167,227
Diluted weighted average
common shares and share
equivalents 167,559 167,227 167,559 167,227
WYNDHAM INTERNATIONAL, INC.
2001 OPERATING STATISTICS BY QUARTER
Second Quarter
--------------
2001 2000 % Change
---- ---- --------
COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
Average daily rate $130.52 $128.92 1.2%
Occupancy 72.2% 76.3% -4.1 ppt
RevPAR $94.28 $98.42 -4.2%
Wyndham Luxury Resorts (b)
Average daily rate $257.18 $269.10 -4.4%
Occupancy 55.5% 62.2% -6.7 ppt
RevPAR $142.75 $167.45 -14.8%
Summerfield by Wyndham
Average daily rate $122.95 $123.69 -0.6%
Occupancy 82.6% 85.4% -2.8 ppt
RevPAR $101.50 $105.60 -3.9%
Wyndham Garden
Average daily rate $86.59 $83.96 3.1%
Occupancy 69.7% 72.0% -2.3 ppt
RevPAR $60.38 $60.50 -0.2%
Six Months Ended June 30, 2001
------------------------------
2001 2000 % Change
---- ---- --------
COMPARABLE WYNDHAM BRANDED HOTELS (a)
Wyndham Hotels & Resorts
Average daily rate $144.64 $139.69 3.5%
Occupancy 71.8% 73.2% -1.4 ppt
RevPAR $103.88 $102.27 1.6%
Wyndham Luxury Resorts (b)
Average daily rate $289.01 $307.83 -6.1%
Occupancy 58.3% 60.4% -2.1 ppt
RevPAR $168.52 $185.99 -9.4%
Summerfield by Wyndham
Average daily rate $125.62 $123.39 1.8%
Occupancy 80.4% 81.7% -1.3 ppt
RevPAR $100.95 $100.77 0.2%
Wyndham Garden
Average daily rate $89.44 $86.64 3.2%
Occupancy 69.7% 70.7% -1.0 ppt
RevPAR $62.30 $61.24 1.7%
Second Quarter
--------------
2001 2000 % Change
---- ---- --------
COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate $132.26 $133.13 -0.7%
Occupancy 76.1% 79.9% -3.8 ppt
RevPAR $100.63 $106.38 -5.4%
Non-Proprietary Branded (d)
Average daily rate $123.74 $118.73 4.2%
Occupancy 71.7% 78.1% -6.4 ppt
RevPAR $88.70 $92.69 -4.3%
Total Portfolio
Average daily rate $131.29 $131.44 -0.1%
Occupancy 75.6% 79.7% -4.1 ppt
RevPAR $99.21 $104.75 -5.3%
Assets Held for Sale
Average daily rate $107.39 $107.56 -0.2%
Occupancy 69.1% 73.8% -4.7 ppt
RevPAR $74.19 $79.38 -6.5%
Six Months Ended June 30, 2001
------------------------------
2001 2000 % Change
---- ---- --------
COMPARABLE OWNED & LEASED HOTELS
Proprietary Branded (c)
Average daily rate $144.93 $143.37 1.1%
Occupancy 75.2% 76.5% -1.3 ppt
RevPAR $108.95 $109.69 -0.7%
Non-Proprietary Branded (d)
Average daily rate $126.82 $120.92 4.9%
Occupancy 72.4% 76.2% -3.8 ppt
RevPAR $91.81 $92.16 -0.4%
Total Portfolio
Average daily rate $142.73 $140.56 1.5%
Occupancy 74.8% 76.4% -1.6 ppt
RevPAR $106.80 $107.49 -0.6%
Assets Held for Sale
Average daily rate $110.49 $109.39 1.0%
Occupancy 67.6% 71.1% -3.5 ppt
RevPAR $74.72 $77.82 -4.0%
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 April 1, 2000.
(d) Non-proprietary brand hotels owned by the Company as of
April 1, 2000.
-------------------------------------------------
Contact:
Wyndham International, Inc.
Analyst Inquiries:
Elizabeth Williams, 214/863-1389
ewilliams@wyndham.com
or
Media Inquiries:
Andrew Jordan, 214/863-1360
ajordan@wyndham.com