| DALLAS - July 29, 2005 -- Wyndham International, Inc. (AMEX:WBR):
Results Summary:
-
Adjusted second quarter EBITDA was $62.0 million, exceeding company guidance
- a 24.0 percent increase year-over-year. Quarterly adjusted EBITDA excludes
a $5.9 million accrual related to a judgment associated with a lawsuit
filed in 2001.
-
Year-to-date EBITDA, as adjusted, on a comparable property basis was $132.8
million or an increase of 13.5 percent versus the same period last year.
-
RevPAR for the company's owned and leased properties increased 7.4 percent,
meeting second quarter guidance.
-
Wyndham posted a second quarter and year-to-date net loss of $78.4 million
and $98.3 million, respectively.
-
Wyndham.com generated $22.8 million in revenue, up 13.5 percent from the
same period last year.
-
Wyndham sold two properties during the quarter for gross proceeds of $23.7
million.
-
As of June 30, 2005, Wyndham's total debt was $1.8 billion.
-
On June 14, 2005, Wyndham announced that it had entered into a merger agreement
to be acquired by The Blackstone Group in a transaction valued at $3.24
billion or $1.15 per common share. The company anticipates that the transaction
will close as soon as practicable following the annual stockholder meeting
to be held on Aug. 11, 2005.
Wyndham International, Inc. (AMEX:WBR) today reported its second quarter
2005 financial results. Exceeding its quarterly guidance, Wyndham's earnings
before interest, taxes, depreciation and amortization (EBITDA) on a comparable
property basis was $62.0 million, an increase of 24.0 percent versus the
same period last year. Wyndham's quarterly EBITDA results exclude a $5.9
million accrual related to a judgment associated with a lawsuit filed in
2001.
The company experienced solid RevPAR increases during the quarter throughout
all of its business segments. For the second quarter, 96.0 percent of Wyndham's
RevPAR growth was driven by an increase in average daily rate (ADR). Comparable
owned and leased RevPAR was $119.02 or an increase of 7.4 percent. Wyndham's
brands produced the following RevPAR results during the quarter:
Wyndham Hotels & Resorts $107.40
or a 7.0 percent increase
Wyndham Luxury Resorts
$120.51 or an 8.6 percent increase
Wyndham Garden Hotels
$87.25 or an 8.8 percent increase
Fred J. Kleisner, chairman, president and chief executive officer, stated:
"Wyndham has been able to increase our RevPAR and resulting EBITDA margins
as the hospitality industry continues to accelerate through pricing power
with the return of business and group travelers. With 96 percent of our
RevPAR increase attributed to strong gains in ADR, our resulting flow through
has improved property EBITDA margins by 390 basis points."
During the second quarter, Wyndham reported a $78.4 million net loss
compared to a net loss of $394.9 million from the prior year. After the
effect of the company's preferred dividend, the resulting net loss per
share was $0.45 on a fully diluted basis compared to a net loss of $2.33
from the prior year.
Six Months Ended Results:
For the six months ended June 30, 2005, adjusted EBITDA was $132.8 million
or an increase of 13.5 percent. Comparable owned and leased RevPAR was
$123.57, an increase of 7.1 percent versus the same period in 2004.
Wyndham reported a $98.3 million net loss compared to a net loss of
$465.1 million from the prior year. After the effect of the preferred dividend,
the resulting net loss per share was $0.57 on a fully diluted basis compared
to a net loss of $2.76 from the prior year.
Brand Distribution:
During the second quarter, the company experienced significant increases
in revenue and ADR across all distribution channels. Net wyndham.com revenue
increased 13.5 percent and posted revenue of $22.8 million. Wyndham.com
continues to lead the online third-party channels, posting a consumer ADR
of $131.80 or an increase of 38.0 percent versus total third-party Internet
sites' net rate to Wyndham of $95.45.
Wyndham's call center experienced an increase of 6.4 percent in call
volume versus the same quarter the prior year and achieved a call conversion
rate of 42.9 percent. The call center's ADR was $127.35 or a 6.3 percent
increase year-over-year.
With a membership of 2.4 million members, Wyndham ByRequest, the company's
guest recognition program, is centered on fulfilling - and exceeding -
guest requests. Now that the program is five years strong, Wyndham has
evaluated both the program's growth and impact of how doing business differently
has benefited the company:
-
More than half of Wyndham ByRequest's member base is comprised of the lucrative
Baby Boomer and Generation X markets.
-
The average revenue per stay for ByRequest members is 31.0 percent higher
than non-members.
-
Wyndham ByRequest members are three times more brand loyal with triple
the number of stays than non-members.
Brand Recognition:
Wyndham recently received recognition from three organizations for its
commitment to diversity. The company earned the No. 1 ranking on the National
Association for the Advancement of Colored People (NAACP)'s Lodging Industry
Report Card moving up from No. 2 in 2004. Wyndham's corporate diversity
efforts have also earned the company a perfect score on the Human Rights
Campaign Corporate Equality Index, and a place on DiversityInc.'s "25 Noteworthy
Companies for Diversity."
"We have worked hard to make Wyndham the hotel brand of choice for diverse
customers, employees and business partners. I challenged our management
team and refocused our corporate mission to transform Wyndham into the
diversity leader that it is today. It is not just about doing the right
thing, but rather, diversity increases our revenue and lowers our business
risk in that we are better protected from the external economic and social
events that shift hotel demand patterns of any one particular group. This
determined focus has created significant increases in our fair market share
over the last five years," said Kleisner.
Non-Strategic Asset Disposition:
During the second quarter 2005, Wyndham sold two hotels for approximately
$23.7 million. On June 1, 2005, Wyndham sold its lease interest in the
Wyndham Hotel in Manhattan to the land owner. Wyndham continues to manage
the property under an interim management agreement until Sept. 1, 2005,
at which time it will close for redevelopment. As part of the transaction,
Wyndham now has full control of its naming rights in Manhattan without
the obligation to pay royalties to any party. On June 15, 2005, Wyndham
sold the Marriott Atlanta to RLJ Atlanta Century Center Hotel, LLC.
Corporate Finance/Accounting:
As of June 30, 2005, Wyndham's total debt was approximately $1.8 billion,
an increase of $130.2 million since the end of the first quarter 2005.
The increase in debt is primarily due to certain costs associated with
the company's corporate debt refinancing, including $100.0 million of pre-funded
capital. Company debt breaks down as follows: Revolver $20.4 million; Term
Loan B $528.7 million; Term Loan C $139.7 million and Mortgage and Other
Indebtedness $1.1 billion. Wyndham's total debt excludes $166.9 million
in debt related to the Wyndham Anatole, a third-party owned hotel. Wyndham
has no obligation to repay the Anatole debt.
At the quarter's end, Wyndham's liquidity, defined as revolver availability
plus cash in its overnight account, was approximately $160.2 million, a
decrease of $41.1 million over the first quarter 2005. The decrease in
liquidity is a result of the company's new refinancing terms and the corresponding
reduction in its revolving credit facility.
Future Guidance:
Full-year EBITDA guidance is maintained and is expected to be in the
range of $220.0 to $230.0 million. RevPAR growth for the full-year is expected
to be in the range of 7.0 to 9.0 percent.
Merger Agreement:
On June 14, 2005, Wyndham International entered into a merger agreement
to be acquired by an affiliate of The Blackstone Group in a transaction
valued at $3.24 billion. Under the terms of the agreement, Blackstone will
acquire all of the outstanding stock of Wyndham for $1.15 per common share
and $72.17 per preferred share in cash, subject to potential adjustment
to reflect additional shares that may be issued as dividends after June
30, 2005. The transaction, which is subject to stockholder approval and
the satisfaction of other customary closing conditions, is expected to
close as soon as practicable following the annual stockholder meeting to
be held on Aug. 11, 2005.
Kleisner added, "The completion of the Blackstone merger will culminate
a long and rewarding journey - a path taken to position Wyndham for long-term
success by implementing strategies that helped us simplify our corporate
structure, dramatically reduce our debt, and sell all our non-strategic
assets. Simultaneously, Wyndham emerged as a hotel brand of choice in the
upscale and luxury hotel segments. We're very proud of the leaner, more
focused organization we have become. As a company whose brand, assets and
service philosophy have been admired and emulated by other hotel companies,
our accomplishments over the last several years have made Wyndham a much
sought-after company and are among the primary reasons that Blackstone
chose to invest in our future."
Wyndham's annual stockholder meeting will be held on Aug. 11, 2005,
at the Wyndham Anatole Hotel in Dallas at 9 a.m. CDT, at which time the
Blackstone merger proposal, the previously announced recapitalization proposal,
the election of directors and the ratification of the appointment of PricewaterhouseCoopers
LLP as Wyndham's independent public accounting firm for 2005 will be voted
upon.
WYNDHAM INTERNATIONAL, INC.
2005 OPERATING STATISTICS BY QUARTER
Second Quarter Six Months
Ended June 30
--------------------------- ---------------------------
2005 2004 % Change
2005 2004 % Change
-------- -------- --------- -------- -------- ---------
COMPARABLE WYNDHAM
BRANDED HOTELS (a)
Wyndham Hotels
& Resorts
Average
daily rate $136.50 $128.20
6.5% $145.61 $136.37 6.8%
Occupancy
78.7% 78.3% 0.4 ppt 77.4%
77.1% 0.3 ppt
RevPAR $107.40
$100.39 7.0% $112.75 $105.15
7.2%
Wyndham Luxury
Resorts (b)
Average
daily rate $238.96 $222.52
7.4% $245.56 $239.75 2.4%
Occupancy
50.4% 49.9% 0.5 ppt 50.2%
49.7% 0.5 ppt
RevPAR $120.51
$110.93 8.6% $123.23 $119.16
3.4%
Wyndham Garden
Average
daily rate $118.92 $102.02
16.6% $113.58 $101.82 11.6%
Occupancy
73.4% 78.6% -5.3 ppt 66.5%
69.8% -3.3 ppt
RevPAR
$87.25 $80.21 8.8%
$75.57 $71.10 6.3%
COMPARABLE OWNED &
LEASED HOTELS
Proprietary
Branded (c)
Average
daily rate $145.34 $135.54
7.2% $154.97 $145.54 6.5%
Occupancy
82.4% 82.5% -0.1 ppt 80.3%
80.0% 0.3 ppt
RevPAR $119.76
$111.81 7.1% $124.41 $116.36
6.9%
Non-
Proprietary
Branded (d)
Average
daily rate $89.70
$81.92 9.5% $93.34
$83.96 11.2%
Occupancy
91.2% 74.9% 16.3 ppt 87.4%
80.7% 6.7 ppt
RevPAR
$81.76 $61.34 33.3% $81.57
$67.76 20.4%
Total
Portfolio
Average
daily rate $144.13 $134.58
7.1% $153.66 $144.32 6.5%
Occupancy
82.6% 82.3% 0.3 ppt 80.4%
80.0% 0.4 ppt
RevPAR $119.02
$110.82 7.4% $123.57 $115.41
7.1%
NOTE: All hotel statistics exclude assets sold or held
for sale during
2005 and assets sold in 2004.
(a) Brand statistics are based on
comparable owned, managed and leased hotels for respective periods.
(b) Reflects results of the Boulders,
Carmel Valley Ranch, Isla Navidad, Kelly House and Harbor View.
(c) Reflects Wyndham Hotels &
Resorts, Wyndham Luxury Resorts and Wyndham Garden Hotels that were branded
as of Jan. 1, 2004.
(d) This represents our Park Shore
hotel located in Hawaii.
WYNDHAM INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
-------------------- --------------------
2005 2004
2005 2004
-------------------- --------------------
Revenues:
Room revenues
$124,497 $115,914 $258,049 $242,326
Food and beverage
revenues
68,327 66,487 135,743
133,955
Other revenues
36,193 35,518 79,616
78,737
Anatole hotel revenues
28,355 23,958 59,094
56,281
--------- ---------- --------- ----------
Total hotel revenues
257,372 241,877 532,502
511,299
Management fees and
service fee income
5,567 4,088 10,936
8,805
Interest and other income
1,296 528
2,081 1,044
--------- ---------- --------- ----------
Total revenues
264,235 246,493 545,519
521,148
--------- ---------- --------- ----------
Expenses:
Room expenses
28,808 27,810 57,624
55,717
Food and beverage
expenses
44,164 44,146 88,520
88,748
Other expenses
87,894 88,303 180,522
179,637
Anatole hotel expenses
17,874 17,069 37,101
37,207
--------- ---------- --------- ----------
Total hotel expenses
178,740 177,328 363,767
361,309
General and
administrative costs
16,878 16,687 27,893
30,730
Interest expense
40,072 45,459 83,166
92,378
Interest expense -
Anatole
3,135 3,208 6,285
6,403
--------- ---------- --------- ----------
Total operating costs
and expenses
238,825 242,682 481,111
490,820
--------- ---------- --------- ----------
Revenues net of direct
expenses
25,410 3,811 64,408
30,328
Adjustments:
Professional fees and
other
420 208
2,107 359
Loss (gain) on derivative
instruments
181 (2,402) (10)
1,934
Loss on extinguishment of
debt
19,925 --
19,925 --
Litigation accrual
5,917 --
5,917 --
Strategic reorganization
costs
3,499 --
5,821 49
Write-off of management
contract and leasehold
costs
340 --
779 --
--------- ---------- --------- ----------
Total adjustments
30,282 (2,194) 34,539
2,342
--------- ---------- --------- ----------
Depreciation and
amortization
24,372 25,470 48,855
54,908
Depreciation and
amortization - Anatole
4,778 2,489 7,809
4,712
Equity in earnings from
unconsolidated subsidiaries (1,008)
(575) (1,381) (1,366)
Minority interest in
consolidated subsidiaries
76 5
185 6
Minority interest in
consolidated subsidiaries -
Anatole
3,230 1,918 9,238
9,414
--------- ---------- --------- ----------
31,448 29,307 64,706
67,674
--------- ---------- --------- ----------
Loss from continued
operations before taxes
(36,320) (23,302) (34,837) (39,688)
Income tax (provision)
benefit
(1,366) 3,783 (3,104)
(1,834)
--------- ---------- --------- ----------
Loss from continued
operations
(37,686) (19,519) (37,941) (41,522)
--------- ---------- --------- ----------
Income from operations of
discontinued hotels
1,339 5,168 3,636
749
Gain on sale of assets
2,795 2,162 25,083
1,144
Impairment of assets held
for sale
-- (340,258) --
(342,221)
Other
221 (786)
180 (819)
--------- ---------- --------- ----------
(Loss) income from
discontinued operations
before taxes
4,355 (333,714) 28,899 (341,147)
Income tax provision
-- --
-- --
--------- ---------- --------- ----------
(Loss) income from
discontinued operations
4,355 (333,714) 28,899 (341,147)
Net loss
$(33,331) $(353,233) $(9,042) $(382,669)
========= ========== ========= ==========
EBITDA, as adjusted
$56,138 $49,964 $132,840 $117,041
========= ========== ========= ==========
WYNDHAM INTERNATIONAL, INC.
EBITDA Reconciliation
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30,
June 30,
-------------------- --------------------
2005 2004
2005 2004
---------- --------- ----------- --------
EBITDA Reconciliation
Loss from continued
operations
$(37,686) $(19,519) $(37,941) $(41,522)
Interest expense
40,072 45,459 83,166
92,378
Depreciation and
amortization
24,372 25,470 48,855
54,908
Income tax provision
(benefit)
1,366 (3,783) 3,104
1,834
--------- ---------- --------- ----------
EBITDA
28,124 47,627 97,184
107,598
Interest, depreciation
and amortization from
equity interest in
unconsolidated
subsidiaries
1,365 1,499 2,700
2,776
Interest, depreciation
and amortization
attributable to minority
interests
188 (94)
163 (234)
Write-off of management
contract and leasehold
costs
340 --
779 --
Profession fees and other
420 121
2,107 181
Amortization of unearned
compensation
456 691
891 1,465
Loss on extinguishment of
debt
19,925 --
19,925 --
Strategic reorganization
costs
3,499 --
5,821 --
Loss (gain) on derivative
instruments
181 (2,402) (10)
1,934
Taxes - franchise
531 1,413 1,063
1,104
Consolidation of Anatole
1,109 1,109 2,217
2,217
--------- ---------- --------- ----------
EBITDA, as adjusted
$56,138 $49,964 $132,840 $117,041
========= ========== ========= ==========
Per Share Calculations:
Loss from continued operations
$(37,686) $(19,519) $(37,941) $(41,522) (Loss) income from
discontinued operations 4,355 (333,714)
28,899 (341,147)
--------- ---------- --------- ----------
Net loss
$(33,331) $(353,233) $(9,042) $(382,669)
Adjustment for preferred
stock
(45,056) (41,622) (89,246) (82,435)
--------- ---------- --------- ----------
Net loss attributable
to common
shareholders
$(78,387) $(394,855) $(98,288) $(465,104)
========= ========== ========= ==========
Basic and diluted loss
per common share:
Loss from continued
operations
$(0.48) $(0.36) $(0.74)
$(0.73)
(Loss) income from
discontinued
operations
0.03 (1.97) 0.17
(2.03)
--------- ---------- --------- ----------
Loss per common
share
$(0.45) $(2.33) $(0.57)
$(2.76)
========= ========== ========= ==========
Basic and diluted
weighted average common
shares and share
equivalents
172,703 169,361 172,355
168,808
|
Based in Dallas, Wyndham International, Inc. offers upscale and luxury
hotel and resort accommodations. Wyndham owns, leases, manages and franchises
hotels and resorts in the U.S., Canada, Mexico, the Caribbean and Europe.
|
