Wyndham Destinations (WYND) Tops Q3 EPS by 7c, Revenues Miss

Wyndham Destinations (NYSE: WYND) reported Q3 EPS of $0.47, $0.07 better than the analyst estimate of $0.40. Revenue for the quarter came in at $614 million versus the consensus estimate of $631.43 million.

• Net income from continuing operations of $40 million and diluted earnings per share of $0.47 on net revenue of $614 million
• Adjusted EBITDA of $139 million and adjusted diluted earnings per share of $0.83 (1)
• Net cash provided by operating activities of $224 million and adjusted free cash flow of $120 million for the first nine months of 2020
• Leverage ratio for covenant purposes of 4.1x at the end of September, well within covenant restriction of 6.5x
• Cash and cash equivalents of $1.3 billion at the end of September; $1.5 billion of liquidity available in cash and cash equivalents and revolving credit facility
• Company expects to recommend a fourth quarter dividend of $0.30 per share for approval by the Board of Directors

"We were very encouraged with our third quarter results. Our ability to recover quickly during this re-opening phase demonstrates the resiliency of our business," commented Michael D. Brown, president and CEO of Wyndham Destinations. "Early indications show buyer behavior remains unchanged, in fact VPG is 30% higher year-over-year at Wyndham Vacation Clubs. Our two business segments, Wyndham Vacation Clubs and Panorama, saw strong demand in net bookings improving throughout the quarter."

"Our focus on leisure travel, and our geographically diverse resort and sales and marketing footprint, gives us confidence for the fourth quarter and heading into 2021. We believe we are well-positioned to lead the broader travel industry in recovery," said Brown. "Our resilient business model means that we expect to be adjusted free cash flow positive for the full-year."

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

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