Cendant Corporation has reported results for first quarter 2006 with revenue totaled $4.2 billion, an increase of 7% over first quarter 2005, reflecting growth across each of the Company’s core operating segments.EPS from Continuing Operations was $0.13, versus $0.06 in first quarter 2005.
Excluding separation costs, EPS from Continuing Operations was $0.16, which was at the high end of the Company’s most recent estimate of $0.11 - $0.16.
Cendant’s President and Chief Financial Officer, Ronald L. Nelson, stated: “Our first quarter 2006 earnings were at the high end of our most recent estimate primarily due to better than expected results at Realogy (formerly Real Estate Services). While home sales in California and Florida declined as forecasted, the balance of the country exhibited overall stability in a moderating environment. Our Timeshare Resorts segment generated double-digit revenue and EBITDA growth, and each of our other reportable segments showed positive revenue trends. In particular, our online travel businesses generated 29% growth in gross bookings, lodging RevPAR increased 10% organically, and car rental produced 15% revenue growth, including the first yearover-year price gain since 2004.”
With respect to Cendant’s plan to separate the Company into four independent, pure play companies, Mr. Nelson further commented: “Each of the spin-offs remains on track, with Realogy expected in June, Wyndham Worldwide in the summer and Travel Distribution Services (TDS) in October. As noted in our press release earlier this week, we are also exploring the possibility of a sale of TDS, which could be consummated by late summer, as an alternative means to maximize shareholder value.”