Wyndham Destinations (WYND) Misses Q1 EPS by 59c, Revenues Miss

Wyndham Destinations (NYSE: WYND) reported Q1 EPS of $, $0.59 worse than the analyst estimate of $0.59. Revenue for the quarter came in at $558 million versus the consensus estimate of $786.71 million.

• Net VOI sales of $90 million; gross VOI sales of $413 million (1)
• Diluted loss per share from continuing operations of $1.54 (adjusted diluted loss per share of $0.98)
• Net loss from continuing operations of $134 million and negative adjusted EBITDA of $44 million
• In anticipation of increased defaults due to the impact of COVID-19, a $225 million provision charge impacted revenue, resulting in a $170 million negative impact to adjusted EBITDA
• Completed a $325 million private securitization in April
• Net cash provided by operating activities from continuing operations of $57 million (negative adjusted free cash flow of $78 million)
• Expect net cash provided by operating activities from continuing operations and adjusted free cash flow to be positive in the first half of 2020
• Cash and cash equivalents of $1.0 billion at the end of March
• The Company's Board of Directors reaffirmed its dividend policy and intends to declare the second quarter cash dividend of $0.50 per share in mid-May

Michael D. Brown, president and CEO of Wyndham Destinations, commented, "Our business performed well in January and February as we were off to a strong start to the year. In March and April our teams met the call to action to confront the health and economic crisis resulting from COVID-19. We quickly responded to guidelines from health officials to protect our owners, members and employees while taking swift measures to address our cost base to preserve cash flow and EBITDA. Our leadership team could not be more proud."

"Our balance sheet is strong, we had $1 billion of cash at the end of the quarter. At the end of April, we further enhanced our liquidity position by completing a $325 million ABS transaction and we project to be adjusted free cash flow positive for the first half of the year. As a result, our Board reaffirmed the dividend policy and intends to declare the second quarter cash dividend of $0.50 per share."

For earnings history and earnings-related data on Wyndham Destinations (WYND) click here.

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