2nd Qt. 2006 Form 8-K for Wyndham

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

From Yahoo

Vacation Exchange and Rental

                                    2006      2005      % change

                         Revenue   $ 261     $ 263            (1 )%

                         EBITDA    $  32     $  58           (45 %)

While volume at our European parks rental business increased and points membership experienced strong growth, revenue for the vacation rental business was primarily flat due to continued weakness in France as a destination market. We experienced soft exchange bookings in the second quarter at hurricane-zone resorts, however, July bookings were stronger, which we believe is an indication of our members booking closer to their travel date.

Vacation Ownership

                                    2006      2005       % change

                         Revenue   $ 518     $ 473             10 %

                         EBITDA    $  84     $  76             11 %

Revenue and EBITDA principally increased due to strong growth in timeshare sales and increased consumer financing income. Growth in timeshare sales revenue was driven by an 11% increase in volume per guest ("VPG") and a 9% increase in tour flow. VPG benefited from higher pricing and increased conversion of tours into sales. Tour flow was positively affected by the continued development of the Trendwest in-house sales program and ongoing improvement in local marketing efforts. Second quarter 2006 results were negatively affected by the adoption in January 2006 of a new accounting standard for the recognition of timeshare sales revenue and expenses (SFAS No. 152), which reduced revenue by $46 million and EBITDA by $2 million, as well as the absence of $11 million of income that was recognized in second quarter 2005 in connection with the disposal of land that was no longer needed for development. Excluding the effect of these items, revenue and EBITDA would have increased 22% and 32%, respectively. Other Items

Jya-Ning

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Operation Statistic 2Q 2006

OPERATING STATISTICS
The following table presents our operating statistics for the three months ended
June 30, 2006. See Results of Operations section for a discussion as to how the
material operating statistics affected our business for the periods presented.

                                                                  Three Months Ended June 30,

                                                             2006             2005          % Change

Lodging (a)
   Weighted average rooms available (b)                       531,000          512,000             4%
   Number of properties (c)                                     6,440            6,380             1%
   RevPAR (d)                                             $     36.97      $     31.91            16%

Vacation Exchange and Rental
   Average number members (e)                               3,327,000        3,185,000             4%
   Annual dues and exchange revenue per member (f)        $    130.37      $    134.98            (3% )
   Vacation rental transactions (g)                           310,000          309,000              -
   Average price per vacation rental (h)                  $    692.63      $    683.38             1%

Vacation Ownership
   Gross vacation ownership interest sales (in
   millions) (i)                                          $       390      $       321            21%
   Tours (j)                                                  273,000          250,000             9%
   Volume Per Guest ("VPG") (k)                           $     1,426      $     1,284            11%


 

(a) The 2006 amounts include Wyndham Hotels and Resorts and Baymont Inn & Suites, which we acquired in October 2005 and April 2006, respectively. Therefore, the operating statistics for 2006 are not presented on a comparable basis to the 2005 operating statistics. On a comparable basis (excluding Wyndham Hotels and Resorts and Baymont from 2006 amounts), RevPAR would have increased 10% and weighted average rooms available would have decreased 3%. 
(b) Represents the weighted average number of hotel rooms available for rental for the period at lodging properties. 
(c) Represents the number of lodging properties operated under franchise and management agreements at the end of the period. 
(d) Represents revenue per available room and is calculated by multiplying the percentage of available rooms occupied for the period by the average rate charged for renting a lodging room for one day. 
(e) Represents members in our vacation exchange programs who pay annual membership dues. For additional fees, such participants are entitled to exchange intervals for intervals at other properties affiliated with our vacation exchange business. In addition, certain participants may exchange intervals for other leisure-related products and services. 

(f) Represents total revenues from annual membership dues and exchange fees generated for the period divided by the average number of vacation exchange members during the year. 

(g) Represents the gross number of transactions that are generated in connection with customers booking their vacation rental stays through us. In our European vacation rental businesses, one rental transaction is recorded each time a standard one-week rental is booked; however, in the United States, one rental transaction is recorded each time a vacation rental stay is booked, regardless of whether it is less than or more than one week. 
(h) Represents the gross rental price generated from renting vacation properties to customers divided by the number of rental transactions. 

(i) Represents gross sales of vacation ownership interests, including tele-sales upgrades, which is a component of upgrade sales. 
(j) Represents the number of tours taken by guests in our efforts to sell vacation ownership interests. 

(k) Represents revenue per guest and is calculated by dividing the gross vacation ownership interest sales, excluding tele-sales upgrades, which is a component of upgrade sales, by the number of tours.

Jya-Ning

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

RCI is a DOG business. They should sell it. Flat revenues and lower profits during the period in which travel is booming. That is pitiful performance.

All of their price increases and rentals are doing nothing to stem the losses elsewhere in the business.

They can't even milk a cow effectively.

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

They can't even milk a cow effectively.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Actually, when look at RevPAR in their hotel business $ 36.97. I tend to believe this is the min. a TS owner can save if they own 1 BD per day base. I don't know how may HOA can say it can be achieved. Hopefully at least 50%. Sadly, I believe white and blue owner and maybe shoulder week owner usually can not even achieve any saving.

But since they do this for business, they really should try to sell RCI and that branch out.

Jya-Ning