Wyndham Worldwide Reports 1st Qtr 2013 Net Income of $27 million
- First quarter adjusted diluted earnings per share (EPS) was?$0.71, compared with?$0.60?in the first quarter of 2012, an increase of 18%. First quarter reported diluted EPS was?$0.19, compared with?$0.21?from the same period in 2012.
- First quarter adjusted net income increased by 9% to?$98 million.
- During the quarter, the Company repurchased 2.4 million shares of its common stock for?$140 million.
“We’re off to a great start this year, with an 18% increase in adjusted earnings per share,” said?Stephen P. Holmes, chairman and CEO. “Our operating momentum is strong and our capital allocation philosophy is disciplined. This winning combination will continue to enhance our growth and shareholder value, this year and in years to come.”
FIRST QUARTER 2013 OPERATING RESULTS
First quarter revenues were?$1.1 billion, an increase of 9% from the prior year period. The increase reflects growth across all of the Company’s businesses, primarily in the Lodging and Vacation Ownership businesses.
For the first quarter of 2013, adjusted net income was?$98 million, or?$0.71?per diluted share, compared with?$90 million, or?$0.60?per diluted share for the same period in 2012. The increase in adjusted net income reflects stronger operating results primarily in our Lodging and Vacation Ownership businesses. EPS also benefited from the Company’s share repurchase program, which decreased weighted average share count by 7% year-over-year.
Reported net income for the first quarter of 2013 was?$27 million, or?$0.19?per diluted share, compared with?$32 million, or?$0.21?per diluted share, for the first quarter of 2012. Reported net income included several items that are excluded from adjusted net income. The net effect of these items reduced first quarter 2013 net income by?$71 million?and reduced first quarter 2012 net income by?$58 million, both primarily related to the early extinguishment of debt. Full reconciliations of adjusted results to GAAP results appear in Table 8 of this press release.
Free cash flow was?$233 million?for the three months ended?March 31, 2013, compared with?$195 million?for the same period in 2012, a 19% increase. The growth of free cash flow largely reflects favorable working capital utilization. The Company defines free cash flow as net cash provided by operating activities less capital expenditures. For the three months ended?March 31, 2013, net cash provided by operating activities was?$274 million, compared with?$228 million?in the prior year period.
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