Investor Presentaiton
WYNDHAM
ā«DESTINATIONS
Appendix: Non-GAAP Reconciliations
Reconciliation of Net Income to Adjusted EBITDA to Further Adjusted EBITDA
to Further Adjusted Net Income From Continuing Operations, continued ($ in millions, except per share amounts)
Adjusted net Income from continuing operations
Income taxes on adjusted net Income
Three Months Ended December 31
(a) Amortization of acquisition-related assets is excluded from adjusted
net income from continuing operations, adjusted
EBITDA, further adjusted EBITDA and further adjusted net income from
continuing operations.
(b) Debt modification costs in interest expense are excluded from
adjusted net income from continuing operations, adjusted
EBITDA, further adjusted EBITDA and further adjusted net income from
continuing operations.
(c) In the twelve months ended December 31, 2018, amounts represent
the tax effect of the adjustments partially offset by
$27 million of non-cash state tax expense incurred by the Company in
connection with the separation of the hotel
business and $13 million of primarily non-cash tax expense from certain
internal restructurings associated with the sale
of its European vacation rentals business. In the twelve months ended
December 31, 2017 amounts represent the tax
effect of the adjustments and an estimated one-time non-cash tax
benefit of $407 million resulting from the enactment
of the Tax Cuts and Jobs Act.
(d) Stock-based compensation is excluded from further adjusted EBITDA
Twelve Months Ended December 31.
2016
EPS
2017
EPS
2018
EPS
2017
EPS
123
$ 1.27
$
100
$0.99
$
46
40
466 $4.69 S
166
365
197
$3.52
Stock-based compensation expense (*)
Depreciation *0
3
11
23
47
30
33
126
125
Interest expense (*
41
42
167
155
Interest Income
(2)
(5)
Adjusted EBITDA
$
241
$
224
S
942
$
882
Separation adjustments (*)
(6)
(10)
(25)
Corporate and other costs
16
25
57
240
234
$
957
5
914
(30)
(29)
(121)
(110)
(40)
(41)
(164)
(166)
2
1
5
6
Stock-based compensation
(3)
(10)
(18)
Further adjusted taxes
(46)
(42)
(179)
(35)
(164)
Further adjusted net Income from continuing
operations
123
$ 1.27
113
$1.11
$
400
$4.04
$
444
$4.29
debt, and a non-investment-grade rating, resulting in higher interest
rates for select tranches of notes.
Diluted Shares Outstanding
96.7
101.0
99.2
109.7
(i) For comparative purposes this assumes a stabilized effective tax rate
of 27% in all quarters prior to the spin-off, which
occurred in the second quarter of 2018. The rate used for 2017 reflects
the benefit of the tax rate reduction resulting
from the U.S. Tax Cuts and Jobs Act.
Further adjusted EBITDA
Depreciation
Interest expense (
Interest Income
but included as a reduction to further adjusted net
income from continuing operations.
(e) Includes incremental license fees paid to Wyndham Hotels & Resorts
and other changes being effected in conjunction
with the spin-off.
(f) Corporate and other costs reflect the Company's position as if the
spin-off of its hotel business and the sale of its
European vacation rentals business had occurred for all reported
periods.
(g) Includes depreciation related to retained Wyndham Destinations'
corporate assets.
(h) Interest expense was calculated based on $2.9 billion of outstanding
debt, excluding non-recourse vacation ownership
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