Wyndham International, Inc. (NYSE:WYN) today reported strong results for the second quarter ended June 30, 2000, including a 5.7% improvement in RevPAR and record occupancy.
“Coming on the heels of a strong first quarter, we have delivered a record second quarter that exceeded the highest Street expectations. This confirms the on-target effectiveness of the business plan we implemented last year and the team that leads this company,” said Fred J. Kleisner, president and chief executive officer. “Our plan is working. We saw improvement in RevPAR across our portfolio. Occupancy was at the highest level in company history at 77.2%. EBITDA growth more than doubled our revenue pace. We also strengthened our balance sheet through the sale of non-strategic assets and the reduction of debt.”
Actual earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $182.4 million. This exceeds the highest Street estimate by $2.3 million and, with 65 fewer hotels, represents a 10.3% increase over the prior year actual earnings of $165.4 million.
On a pro forma basis, which reflects the spin-off of Interstate and other completed asset dispositions, EBITDA, as adjusted, increased 15.3% to $177.3 million in the second quarter of 2000 from $153.8 million in 1999. Revenues in the second quarter increased 11.2% to $652.3 million, from $586.6 million in 1999.
For the second quarter, on a pro forma basis, the company reported a net loss of $49 million, or $0.45 per share (diluted), compared with a loss of $856.4 million, or $5.30 per share (diluted), in the second quarter 1999. The 2000 results were impacted by a non-recurring, non-cash charge of $45.4 million, net of taxes, reflecting a write-down of certain non-strategic assets currently being held for sale as part of Wyndham`s strategy to focus on its core proprietary brands. The loss in 1999 largely reflected one-time costs associated with the company`s recapitalization and restructuring.
Reflecting its focus on becoming a branded hotel operating company, Wyndham sold $140 million of non-strategic assets in the quarter. The sale of assets, along with operational cash flow, enabled the company to strengthen its balance sheet by reducing debt by $160 million in the quarter while cash remained constant.