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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Wyndham Hotels & Resorts Inc | NYSE:WH | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.63 | -0.85% | 73.25 | 74.61 | 72.925 | 74.36 | 567,259 | 01:00:00 |
Delaware
|
82-3356232
|
||||||||||
(State or other jurisdiction
of incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
||||||||||
22 Sylvan Way
|
07054
|
||||||||||
Parsippany,
|
New Jersey
|
(Zip Code)
|
|||||||||
(Address of principal executive offices)
|
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock
|
WH | New York Stock Exchange |
Large accelerated filer
|
☑
|
Accelerated filer
|
☐
|
||||||||||||||||||||
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
||||||||||||||||||||
Emerging growth company
|
☐
|
Page
|
||||||||
PART I
|
FINANCIAL INFORMATION
|
|||||||
Item 1.
|
||||||||
Item 2.
|
||||||||
Item 3.
|
||||||||
Item 4.
|
||||||||
PART II
|
OTHER INFORMATION
|
|||||||
Item 1.
|
||||||||
Item 1A.
|
||||||||
Item 2.
|
||||||||
Item 3.
|
||||||||
Item 4.
|
||||||||
Item 5.
|
||||||||
Item 6.
|
||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net revenues | |||||||||||||||||||||||
Royalties and franchise fees | $ | 122 | $ | 61 | $ | 200 | $ | 154 | |||||||||||||||
Marketing, reservation and loyalty | 119 | 82 | 204 | 188 | |||||||||||||||||||
Management and other fees | 30 | 6 | 50 | 38 | |||||||||||||||||||
License and other fees | 20 | 21 | 40 | 42 | |||||||||||||||||||
Other
|
30 | 22 | 60 | 53 | |||||||||||||||||||
Fee-related and other revenues | 321 | 192 | 554 | 475 | |||||||||||||||||||
Cost reimbursements | 85 | 66 | 155 | 192 | |||||||||||||||||||
Net revenues
|
406 | 258 | 709 | 667 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Marketing, reservation and loyalty | 105 | 85 | 198 | 204 | |||||||||||||||||||
Operating | 31 | 23 | 58 | 57 | |||||||||||||||||||
General and administrative | 27 | 26 | 51 | 54 | |||||||||||||||||||
Cost reimbursements | 85 | 66 | 155 | 192 | |||||||||||||||||||
Depreciation and amortization | 24 | 25 | 47 | 49 | |||||||||||||||||||
Separation-related | 1 | — | 3 | 1 | |||||||||||||||||||
Impairments, net | — | 206 | — | 206 | |||||||||||||||||||
Restructuring | — | 16 | — | 29 | |||||||||||||||||||
Transaction-related, net | — | 5 | — | 13 | |||||||||||||||||||
Total expenses
|
273 | 452 | 512 | 805 | |||||||||||||||||||
Operating income/(loss) | 133 | (194) | 197 | (138) | |||||||||||||||||||
Interest expense, net
|
22 | 28 | 51 | 54 | |||||||||||||||||||
Early extinguishment of debt | 18 | — | 18 | — | |||||||||||||||||||
Income/(loss) before income taxes | 93 | (222) | 128 | (192) | |||||||||||||||||||
Provision for/(benefit from) income taxes
|
25 | (48) | 35 | (40) | |||||||||||||||||||
Net income/(loss)
|
$ | 68 | $ | (174) | $ | 93 | $ | (152) | |||||||||||||||
Earnings/(loss) per share
|
|||||||||||||||||||||||
Basic | $ | 0.73 | $ | (1.86) | $ | 0.99 | $ | (1.63) | |||||||||||||||
Diluted | 0.73 | (1.86) | 0.99 | (1.63) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income/(loss) | $ | 68 | $ | (174) | $ | 93 | $ | (152) | |||||||||||||||
Other comprehensive income/(loss), net of tax | |||||||||||||||||||||||
Foreign currency translation adjustments
|
1 | 1 | 2 | (2) | |||||||||||||||||||
Unrealized gains/(losses) on cash flow hedges
|
4 | (2) | 17 | (38) | |||||||||||||||||||
Other comprehensive income/(loss), net of tax
|
5 | (1) | 19 | (40) | |||||||||||||||||||
Comprehensive income/(loss)
|
$ | 73 | $ | (175) | $ | 112 | $ | (192) |
June 30, 2021 | December 31, 2020 | ||||||||||
Assets
|
|||||||||||
Current assets:
|
|||||||||||
Cash and cash equivalents
|
$ | 103 | $ | 493 | |||||||
Trade receivables, net
|
298 | 295 | |||||||||
Prepaid expenses
|
52 | 45 | |||||||||
Other current assets
|
63 | 67 | |||||||||
Total current assets
|
516 | 900 | |||||||||
Property and equipment, net
|
267 | 278 | |||||||||
Goodwill
|
1,525 | 1,525 | |||||||||
Trademarks, net
|
1,202 | 1,203 | |||||||||
Franchise agreements and other intangibles, net
|
493 | 512 | |||||||||
Other non-current assets
|
238 | 226 | |||||||||
Total assets
|
$ | 4,241 | $ | 4,644 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities:
|
|||||||||||
Current portion of long-term debt
|
$ | 21 | $ | 21 | |||||||
Accounts payable
|
33 | 28 | |||||||||
Deferred revenues
|
80 | 71 | |||||||||
Accrued expenses and other current liabilities
|
227 | 226 | |||||||||
Total current liabilities | 361 | 346 | |||||||||
Long-term debt | 2,071 | 2,576 | |||||||||
Deferred income taxes
|
368 | 359 | |||||||||
Deferred revenues
|
160 | 158 | |||||||||
Other non-current liabilities
|
221 | 242 | |||||||||
Total liabilities
|
3,181 | 3,681 | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Stockholders’ equity:
|
|||||||||||
Preferred stock, $0.01 par value, authorized 6.0 shares, none issued and outstanding
|
— | — | |||||||||
Common stock, $0.01 par value, authorized 600.0 shares, 101.2 and 100.8 issued and outstanding at June 30, 2021 and December 31, 2020
|
1 | 1 | |||||||||
Treasury stock, at cost – 7.7 shares at June 30, 2021 and December 31, 2020
|
(408) | (408) | |||||||||
Additional paid-in capital
|
1,519 | 1,504 | |||||||||
Accumulated deficit | (19) | (82) | |||||||||
Accumulated other comprehensive loss
|
(33) | (52) | |||||||||
Total stockholders’ equity
|
1,060 | 963 | |||||||||
Total liabilities and stockholders' equity
|
$ | 4,241 | $ | 4,644 |
Six Months Ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Operating activities
|
|||||||||||
Net income/(loss) | $ | 93 | $ | (152) | |||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities: | |||||||||||
Depreciation and amortization | 47 | 49 | |||||||||
Provision for doubtful accounts | 14 | 21 | |||||||||
Impairments, net
|
— | 209 | |||||||||
Deferred income taxes
|
3 | (47) | |||||||||
Stock-based compensation
|
13 | 10 | |||||||||
Loss on early extinguishment of debt | 18 | — | |||||||||
Net change in assets and liabilities:
|
|||||||||||
Trade receivables
|
(16) | (44) | |||||||||
Prepaid expenses
|
(7) | (3) | |||||||||
Other current assets
|
4 | (3) | |||||||||
Accounts payable, accrued expenses and other current liabilities
|
6 | (51) | |||||||||
Deferred revenues | 11 | (22) | |||||||||
Payments of development advance notes, net | (16) | (6) | |||||||||
Other, net
|
10 | (1) | |||||||||
Net cash provided by/(used in) operating activities
|
180 | (40) | |||||||||
Investing activities
|
|||||||||||
Property and equipment additions
|
(17) | (18) | |||||||||
Issuance of loans, net
|
— | (1) | |||||||||
Other, net
|
(1) | — | |||||||||
Net cash used in investing activities
|
(18) | (19) | |||||||||
Financing activities
|
|||||||||||
Proceeds from borrowings | 45 | 744 | |||||||||
Principal payments on long-term debt
|
(566) | (18) | |||||||||
Dividends to shareholders
|
(30) | (38) | |||||||||
Repurchases of common stock
|
— | (50) | |||||||||
Net share settlement of incentive equity awards
|
(6) | (4) | |||||||||
Other, net
|
5 | (4) | |||||||||
Net cash (used in)/provided by financing activities
|
(552) | 630 | |||||||||
Effect of changes in exchange rates on cash, cash equivalents and restricted cash
|
— | (1) | |||||||||
Net (decrease)/increase in cash, cash equivalents and restricted cash | (390) | 570 | |||||||||
Cash, cash equivalents and restricted cash, beginning of period
|
493 | 94 | |||||||||
Cash, cash equivalents and restricted cash, end of period
|
$ | 103 | $ | 664 |
Common Shares Outstanding
|
Common Stock
|
Treasury
Stock
|
Additional Paid-in Capital
|
Accumulated Deficit
|
Accumulated Other Comprehensive Loss
|
Total Equity
|
|||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 93 | $ | 1 | $ | (408) | $ | 1,504 | $ | (82) | $ | (52) | $ | 963 | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 24 | — | 24 | ||||||||||||||||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 14 | 14 | ||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | (15) | — | (15) | ||||||||||||||||||||||||||||||||||
Net share settlement of incentive equity awards
|
— | — | — | (5) | — | — | (5) | ||||||||||||||||||||||||||||||||||
Change in deferred compensation
|
— | — | — | 5 | — | — | 5 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021
|
93 | 1 | (408) | 1,508 | (72) | (38) | 991 | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 68 | — | 68 | ||||||||||||||||||||||||||||||||||
Other comprehensive income
|
— | — | — | — | — | 5 | 5 | ||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | (15) | — | (15) | ||||||||||||||||||||||||||||||||||
Net share settlement of incentive equity awards
|
— | — | — | (1) | — | — | (1) | ||||||||||||||||||||||||||||||||||
Change in deferred compensation
|
— | — | — | 8 | — | — | 8 | ||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||||
Issuance of shares for restricted stock units vesting | 1 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021
|
94 | $ | 1 | $ | (408) | $ | 1,519 | $ | (19) | $ | (33) | $ | 1,060 |
Common Shares Outstanding
|
Common Stock
|
Treasury
Stock
|
Additional Paid-in Capital
|
Retained Earnings/(Accumulated Deficit)
|
Accumulated Other Comprehensive Loss
|
Total Equity
|
|||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 94 | $ | 1 | $ | (363) | $ | 1,488 | $ | 113 | $ | (27) | $ | 1,212 | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 22 | — | 22 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss
|
— | — | — | — | — | (39) | (39) | ||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | (30) | — | (30) | ||||||||||||||||||||||||||||||||||
Repurchase of common stock
|
(1) | — | (45) | — | — | — | (45) | ||||||||||||||||||||||||||||||||||
Net share settlement of incentive equity awards
|
— | — | — | (2) | — | — | (2) | ||||||||||||||||||||||||||||||||||
Change in deferred compensation
|
— | — | — | 4 | — | — | 4 | ||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting standard
|
— | — | — | — | (10) | — | (10) | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 93 | 1 | (408) | 1,490 | 95 | (66) | 1,112 | ||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | (174) | — | (174) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss
|
— | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Dividends | — | — | — | — | (8) | — | (8) | ||||||||||||||||||||||||||||||||||
Net share settlement of incentive equity awards
|
— | — | — | (2) | — | — | (2) | ||||||||||||||||||||||||||||||||||
Change in deferred compensation
|
— | — | — | 6 | — | — | 6 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | (1) | 1 | — | — | ||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | 93 | $ | 1 | $ | (408) | $ | 1,493 | $ | (86) | $ | (67) | $ | 933 |
1. BASIS OF PRESENTATION |
2. NEW ACCOUNTING PRONOUNCEMENTS |
3. REVENUE RECOGNITION |
June 30, 2021 | December 31, 2020 | ||||||||||
Deferred initial franchise fee revenues
|
$ | 143 | $ | 136 | |||||||
Deferred loyalty program revenues
|
76 | 75 | |||||||||
Deferred other revenues
|
21 | 18 | |||||||||
Total
|
$ | 240 | $ | 229 |
7/1/2021 - 6/30/2022 | 7/1/2022 - 6/30/2023 | 7/1/2023 - 6/30/2024 |
|
Thereafter
|
|
Total
|
|||||||||||||||||||||||
Initial franchise fee revenues
|
$ | 23 | $ | 9 | $ | 8 | $ | 103 | $ | 143 | |||||||||||||||||||
Loyalty program revenues
|
44 | 22 | 8 | 2 | 76 | ||||||||||||||||||||||||
Other revenues
|
13 | 1 | 1 | 6 | 21 | ||||||||||||||||||||||||
Total
|
$ | 80 | $ | 32 | $ | 17 | $ | 111 | $ | 240 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Hotel Franchising
|
|||||||||||||||||||||||
Royalties and franchise fees
|
$ | 115 | $ | 59 | $ | 190 | $ | 144 | |||||||||||||||
Marketing, reservation and loyalty
|
119 | 82 | 204 | 187 | |||||||||||||||||||
License and other fees
|
20 | 21 | 40 | 42 | |||||||||||||||||||
Other
|
29 | 20 | 58 | 52 | |||||||||||||||||||
Total Hotel Franchising
|
283 | 182 | 492 | 425 | |||||||||||||||||||
Hotel Management
|
|||||||||||||||||||||||
Royalties and franchise fees
|
7 | 2 | 10 | 10 | |||||||||||||||||||
Marketing, reservation and loyalty
|
— | — | — | 1 | |||||||||||||||||||
Owned hotel revenues
|
21 | 2 | 34 | 23 | |||||||||||||||||||
Management fees
|
9 | 4 | 16 | 15 | |||||||||||||||||||
Cost reimbursements
|
85 | 66 | 155 | 192 | |||||||||||||||||||
Other
|
1 | 2 | 2 | 1 | |||||||||||||||||||
Total Hotel Management
|
123 | 76 | 217 | 242 | |||||||||||||||||||
Net revenues
|
$ | 406 | $ | 258 | $ | 709 | $ | 667 |
4. EARNINGS PER SHARE |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income/(loss) | $ | 68 | $ | (174) | $ | 93 | $ | (152) | |||||||||||||||
Basic weighted average shares outstanding | 93.6 | 93.3 | 93.5 | 93.5 | |||||||||||||||||||
Stock options and restricted stock units (“RSUs”) (a)
|
0.5 | — | 0.4 | — | |||||||||||||||||||
Diluted weighted average shares outstanding
|
94.1 | 93.3 | 93.9 | 93.5 | |||||||||||||||||||
Earnings/(loss) per share:
|
|||||||||||||||||||||||
Basic
|
$ | 0.73 | $ | (1.86) | $ | 0.99 | $ | (1.63) | |||||||||||||||
Diluted
|
0.73 | (1.86) | 0.99 | (1.63) | |||||||||||||||||||
Dividends:
|
|||||||||||||||||||||||
Cash dividends declared per share
|
$ | 0.16 | $ | 0.08 | $ | 0.32 | $ | 0.40 | |||||||||||||||
Aggregate dividends paid to shareholders
|
$ | 15 | $ | 8 | $ | 30 | $ | 38 |
Shares | Cost | Average Price Per Share | |||||||||||||||
As of December 31, 2020
|
7.7 | $ | 408 | $ | 53.43 | ||||||||||||
For the six months ended June 30, 2021
|
— | — | — | ||||||||||||||
As of June 30, 2021 | 7.7 | $ | 408 | $ | 53.43 |
5. ACCOUNTS RECEIVABLE |
2021 | 2020 | ||||||||||
Balance as of January 1, | $ | 72 | $ | 47 | |||||||
Cumulative effect of change in accounting standard | — | 12 | |||||||||
Provision for doubtful accounts | 14 | 21 | |||||||||
Bad debt write-offs | (8) | (13) | |||||||||
Balance as of June 30, | $ | 78 | $ | 67 |
6. LONG-LIVED ASSETS |
Intangible Asset | Book Value | Impairment Charges | Adjusted Fair Value | |||||||||||||||||
Owned hotel reporting unit goodwill | $ | 14 | $ | (14) | $ | — | ||||||||||||||
La Quinta trademark | 710 | (155) | 555 | |||||||||||||||||
Other trademarks (a)
|
103 | (36) | 67 | |||||||||||||||||
Total | $ | 827 | $ | (205) | $ | 622 |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Impairment |
Net
Carrying Amount |
Gross
Carrying Amount |
Accumulated
Impairment |
Net
Carrying Amount |
||||||||||||||||||||||||||||||
Goodwill
|
$ | 1,539 | $ | 14 | $ | 1,525 | $ | 1,539 | $ | 14 | $ | 1,525 | |||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
Gross
Carrying Amount |
Accumulated
Amortization |
Net
Carrying Amount |
||||||||||||||||||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||||||||||||||||
Trademarks | $ | 1,201 | $ | 1,202 | |||||||||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||||||||
Franchise agreements | $ | 895 | $ | 500 | $ | 395 | $ | 895 | $ | 487 | $ | 408 | |||||||||||||||||||||||
Management agreements | 136 | 38 | 98 | 136 | 33 | 103 | |||||||||||||||||||||||||||||
Trademarks | 2 | 1 | 1 | 2 | 1 | 1 | |||||||||||||||||||||||||||||
Other
|
1 | 1 | — | 1 | — | 1 | |||||||||||||||||||||||||||||
$ | 1,034 | $ | 540 | $ | 494 | $ | 1,034 | $ | 521 | $ | 513 |
7. FRANCHISING, MARKETING AND RESERVATION ACTIVITIES |
Condensed Consolidated Balance Sheets:
|
June 30, 2021 | December 31, 2020 | |||||||||
Development advance notes (a)
|
$ | 101 | $ | 92 |
Condensed Consolidated Statements of Income/(Loss):
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Forgiveness of notes (a)
|
$ | 2 | $ | 2 | $ | 4 | $ | 4 | |||||||||||||||
Bad debt expense related to notes
|
— | — | — | 1 | |||||||||||||||||||
Condensed Consolidated Statements of Cash Flows:
|
Six Months Ended June 30, | ||||||||||
2021 | 2020 | ||||||||||
Payments of development advance notes | $ | (17) | $ | (6) | |||||||
Proceeds from development advance notes
|
1 | — | |||||||||
Payments of development advance notes, net
|
$ | (16) | $ | (6) | |||||||
8. INCOME TAXES |
9. LONG-TERM DEBT AND BORROWING ARRANGEMENTS |
June 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Long-term debt: (a)
|
Amount |
Weighted Average Rate (b)
|
Amount |
Weighted Average Rate (b)
|
|||||||||||||||||||
$750 million revolving credit facility (due May 2023) | $ | — | $ | — | |||||||||||||||||||
Term loan (due May 2025) | 1,547 | 3.13% | 1,554 | 3.18% | |||||||||||||||||||
5.375% senior unsecured notes (due April 2026) | — | 496 | 5.38% | ||||||||||||||||||||
4.375% senior unsecured notes (due August 2028) | 492 | 4.38% | 492 | 4.38% | |||||||||||||||||||
Finance leases | 53 | 4.50% | 55 | 4.50% | |||||||||||||||||||
Total long-term debt | 2,092 | 2,597 | |||||||||||||||||||||
Less: Current portion of long-term debt | 21 | 21 | |||||||||||||||||||||
Long-term debt | $ | 2,071 | $ | 2,576 |
Long-Term Debt | |||||
Within 1 year | $ | 21 | |||
Between 1 and 2 years | 21 | ||||
Between 2 and 3 years | 22 | ||||
Between 3 and 4 years | 1,505 | ||||
Between 4 and 5 years | 6 | ||||
Thereafter | 517 | ||||
Total | $ | 2,092 |
Revolving Credit Facility | |||||
Total capacity | $ | 750 | |||
Less: Letters of credit | 15 | ||||
Available capacity | $ | 735 |
10. FAIR VALUE |
June 30, 2021 | |||||||||||
Carrying Amount | Estimated Fair Value | ||||||||||
Debt | $ | 2,092 | $ | 2,116 |
11. COMMITMENTS AND CONTINGENCIES |
12. STOCK-BASED COMPENSATION |
RSUs
|
PSUs
|
||||||||||||||||||||||
Number of
RSUs |
Weighted
Average Grant Price |
Number
of PSUs |
Weighted
Average Grant Price |
||||||||||||||||||||
Balance as of December 31, 2020 | 0.9 | $ | 54.15 | 0.2 | $ | 52.93 | |||||||||||||||||
Granted (a)
|
0.6 | 65.21 | 0.1 | 65.21 | |||||||||||||||||||
Vested
|
(0.3) | 54.79 | — | — | |||||||||||||||||||
Canceled
|
(0.1) | 57.04 | — | — | |||||||||||||||||||
Balance as of June 30, 2021 | 1.1 |
(b)
|
$ | 59.79 | 0.3 |
(c)
|
$ | 57.51 |
Number of Options
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life (Years)
|
Aggregate Intrinsic Value (in millions)
|
||||||||||||||||||||
Outstanding as of December 31, 2020 | 1.4 | $ | 55.57 | ||||||||||||||||||||
Granted
|
0.1 | 65.21 | |||||||||||||||||||||
Exercised
|
(0.1) | 55.99 | |||||||||||||||||||||
Canceled
|
(0.1) | 55.26 | |||||||||||||||||||||
Expired
|
— | — | |||||||||||||||||||||
Outstanding as of June 30, 2021
|
1.3 | $ | 56.12 | 5.0 | $ | 21 | |||||||||||||||||
Unvested as of June 30, 2021
|
0.7 |
(a)
|
$ | 55.47 | 5.3 | $ | 11 | ||||||||||||||||
Exercisable as of June 30, 2021
|
0.6 | $ | 56.85 | 4.8 | $ | 10 |
2021 | 2020 | ||||||||||
Grant date fair value | $19.58 | $8.59 | |||||||||
Grant date strike price | $65.21 | $53.40 | |||||||||
Expected volatility | 40.18% | 24.30% | |||||||||
Expected life | 4.25 years | 4.25 years | |||||||||
Risk-free interest rate | 0.40% | 1.21% | |||||||||
Projected dividend yield | 0.98% | 2.40% |
13. SEGMENT INFORMATION |
Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net Revenues
|
Adjusted EBITDA
|
Net Revenues
|
Adjusted EBITDA (a)
|
||||||||||||||||||||
Hotel Franchising
|
$ | 283 | $ | 166 | $ | 182 | $ | 86 | |||||||||||||||
Hotel Management
|
123 | 16 | 76 | (4) | |||||||||||||||||||
Total Reportable Segments
|
406 | 182 | 258 | 82 | |||||||||||||||||||
Corporate and Other
|
— | (14) | — | (16) | |||||||||||||||||||
Total Company
|
$ | 406 | $ | 168 | $ | 258 | $ | 66 |
Three Months Ended June 30, | |||||||||||
2021 |
2020 (a)
|
||||||||||
Net income/(loss) | $ | 68 | $ | (174) | |||||||
Provision for/(benefit from) income taxes | 25 | (48) | |||||||||
Depreciation and amortization | 24 | 25 | |||||||||
Interest expense, net | 22 | 28 | |||||||||
Early extinguishment of debt | 18 | — | |||||||||
Stock-based compensation expense | 8 | 5 | |||||||||
Development advance notes amortization | 2 | 2 | |||||||||
Separation-related expenses | 1 | — | |||||||||
Impairments, net | — | 206 | |||||||||
Restructuring costs | — | 16 | |||||||||
Transaction-related expenses, net | — | 5 | |||||||||
Adjusted EBITDA
|
$ | 168 | $ | 66 |
Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net Revenues
|
Adjusted EBITDA
|
Net Revenues
|
Adjusted EBITDA (a)
|
||||||||||||||||||||
Hotel Franchising
|
$ | 492 | $ | 271 | $ | 425 | $ | 196 | |||||||||||||||
Hotel Management
|
217 | 22 | 242 | 13 | |||||||||||||||||||
Total Reportable Segments
|
709 | 293 | 667 | 209 | |||||||||||||||||||
Corporate and Other
|
— | (28) | — | (34) | |||||||||||||||||||
Total Company
|
$ | 709 | $ | 265 | $ | 667 | $ | 175 |
Six Months Ended June 30, | |||||||||||
2021 |
2020 (a)
|
||||||||||
Net income/(loss) | $ | 93 | $ | (152) | |||||||
Provision for/(benefit from) income taxes | 35 | (40) | |||||||||
Depreciation and amortization | 47 | 49 | |||||||||
Interest expense, net | 51 | 54 | |||||||||
Early extinguishment of debt | 18 | — | |||||||||
Stock-based compensation expense | 13 | 9 | |||||||||
Development advance notes amortization | 4 | 4 | |||||||||
Separation-related expenses | 3 | 1 | |||||||||
Impairments, net | — | 206 | |||||||||
Restructuring costs | — | 29 | |||||||||
Transaction-related expenses, net | — | 13 | |||||||||
Foreign currency impact of highly inflationary countries
|
1 | 1 | |||||||||
Adjusted EBITDA
|
$ | 265 | $ | 175 |
14. OTHER EXPENSES AND CHARGES |
2020 Activity | ||||||||||||||||||||||||||||||||
Liability as of December 31, 2019 | Costs Recognized | Cash Payments |
Other (a)
|
Liability as of
June 30, 2020 |
||||||||||||||||||||||||||||
2019 Plan | ||||||||||||||||||||||||||||||||
Personnel-related | $ | 8 | $ | — | $ | (6) | $ | (1) | $ | 1 | ||||||||||||||||||||||
2020 Plans | ||||||||||||||||||||||||||||||||
Personnel-related | — | 23 | (12) | (1) | 10 | |||||||||||||||||||||||||||
Facility-related | — | 5 | — | — | 5 | |||||||||||||||||||||||||||
Other | — | 1 | (1) | — | — | |||||||||||||||||||||||||||
Total 2020 Plans | — | 29 | (13) | (1) | 15 | |||||||||||||||||||||||||||
Total accrued restructuring | $ | 8 | $ | 29 | $ | (19) | $ | (2) | $ | 16 |
2021 Activity | ||||||||||||||||||||||||||||||||
Liability as of December 31, 2020 | Cash Payments |
Liability as of
June 30, 2021 |
||||||||||||||||||||||||||||||
Personnel-related | $ | 7 | $ | (6) | $ | 1 | ||||||||||||||||||||||||||
Facility-related | 3 | (1) | 2 | |||||||||||||||||||||||||||||
Total accrued restructuring | $ | 10 | $ | (7) | $ | 3 |
15. TRANSACTIONS WITH FORMER PARENT |
16. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) |
Net of Tax | Foreign Currency Translation Adjustments | Cash Flow Hedges | Accumulated Other Comprehensive Income/(Loss) | |||||||||||||||||
Balance as of December 31, 2020 | $ | 2 | $ | (54) | $ | (52) | ||||||||||||||
Period change | — | 14 | 14 | |||||||||||||||||
Balance as of March 31, 2021 | 2 | (40) | (38) | |||||||||||||||||
Period change | 1 | 4 | 5 | |||||||||||||||||
Balance as of June 30, 2021 | $ | 3 | $ | (36) | $ | (33) | ||||||||||||||
Net of Tax | ||||||||||||||||||||
Balance as of December 31, 2019 | $ | (1) | $ | (26) | $ | (27) | ||||||||||||||
Period change | (3) | (36) | (39) | |||||||||||||||||
Balance as of March 31, 2020 | (4) | (62) | (66) | |||||||||||||||||
Period change | 1 | (2) | (1) | |||||||||||||||||
Balance as of June 30, 2020 | $ | (3) | $ | (64) | $ | (67) |
BUSINESS AND OVERVIEW |
RESULTS OF OPERATIONS |
OPERATING STATISTICS |
As of June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
Rooms
|
|||||||||||||||||
United States
|
484,800 | 502,000 | (3%) | ||||||||||||||
International
|
313,200 | 310,900 | 1% | ||||||||||||||
Total rooms
|
798,000 | 812,900 | (2%) | ||||||||||||||
Three Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
RevPAR
|
|||||||||||||||||
United States
|
$ | 48.37 | $ | 23.19 | 109% | ||||||||||||
International (a)
|
18.84 | 7.96 | 137% | ||||||||||||||
Global RevPAR (a)
|
36.92 | 17.31 | 113% | ||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
RevPAR
|
|||||||||||||||||
United States
|
$ | 39.53 | $ | 28.33 | 40% | ||||||||||||
International (b)
|
17.35 | 13.20 | 31% | ||||||||||||||
Global RevPAR (b)
|
30.94 | 22.50 | 38% |
THREE MONTHS ENDED JUNE 30, 2021 VS. THREE MONTHS ENDED JUNE 30, 2020 |
Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 |
Change
|
% Change | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Fee-related and other revenues | $ | 321 | $ | 192 | $ | 129 | 67 | % | |||||||||||||||
Cost reimbursement revenues | 85 | 66 | 19 | 29 | % | ||||||||||||||||||
Net revenues | 406 | 258 | 148 | 57 | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Marketing, reservation and loyalty expense | 105 | 85 | 20 | 24 | % | ||||||||||||||||||
Cost reimbursement expense | 85 | 66 | 19 | 29 | % | ||||||||||||||||||
Other expenses | 83 | 301 | (218) | (72 | %) | ||||||||||||||||||
Total expenses
|
273 | 452 | (179) | (40 | %) | ||||||||||||||||||
Operating income/(loss) | 133 | (194) | 327 | n/a | |||||||||||||||||||
Interest expense, net
|
22 | 28 | (6) | (21 | %) | ||||||||||||||||||
Early extinguishment of debt | 18 | — | 18 | n/a | |||||||||||||||||||
Income/(loss) before income taxes | 93 | (222) | 315 | n/a | |||||||||||||||||||
Provision for/(benefit from) income taxes
|
25 | (48) | 73 | n/a | |||||||||||||||||||
Net income/(loss) | $ | 68 | $ | (174) | $ | 242 | n/a |
Three Months Ended June 30, | |||||||||||
2021 |
2020 (a)
|
||||||||||
Net income/(loss) | $ | 68 | $ | (174) | |||||||
Provision for/(benefit from) income taxes | 25 | (48) | |||||||||
Depreciation and amortization | 24 | 25 | |||||||||
Interest expense, net | 22 | 28 | |||||||||
Early extinguishment of debt | 18 | — | |||||||||
Stock-based compensation expense | 8 | 5 | |||||||||
Development advance notes amortization | 2 | 2 | |||||||||
Separation-related expenses | 1 | — | |||||||||
Impairments, net | — | 206 | |||||||||
Restructuring costs | — | 16 | |||||||||
Transaction-related expenses, net | — | 5 | |||||||||
Adjusted EBITDA
|
$ | 168 | $ | 66 |
Net Revenues
|
Adjusted EBITDA
|
||||||||||||||||||||||||||||||||||
2021 | 2020 |
% Change
|
2021 |
2020 (a)
|
% Change
|
||||||||||||||||||||||||||||||
Hotel Franchising
|
$ | 283 | $ | 182 | 55% | $ | 166 | $ | 86 | 93% | |||||||||||||||||||||||||
Hotel Management
|
123 | 76 | 62% | 16 | (4) | n/a | |||||||||||||||||||||||||||||
Corporate and Other
|
— | — | n/a | (14) | (16) | n/a | |||||||||||||||||||||||||||||
Total Company
|
$ | 406 | $ | 258 | 57% | $ | 168 | $ | 66 | 155% |
Three Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
Total rooms | 752,500 | 754,700 | —% | ||||||||||||||
Global RevPAR (a)
|
$ | 35.69 | $ | 17.05 | 109% |
Three Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
Total rooms | 45,500 | 58,200 | (22%) | ||||||||||||||
Global RevPAR (a)
|
$ | 56.08 | $ | 20.67 | 171% |
SIX MONTHS ENDED JUNE 30, 2021 VS. SIX MONTHS ENDED JUNE 30, 2020 |
Six Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 |
Change
|
% Change
|
||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Fee-related and other revenues | $ | 554 | $ | 475 | $ | 79 | 17 | % | |||||||||||||||
Cost reimbursement revenues | 155 | 192 | (37) | (19 | %) | ||||||||||||||||||
Net revenues | 709 | 667 | 42 | 6 | % | ||||||||||||||||||
Expenses | |||||||||||||||||||||||
Marketing, reservation and loyalty expense | 198 | 204 | (6) | (3 | %) | ||||||||||||||||||
Cost reimbursement expense | 155 | 192 | (37) | (19 | %) | ||||||||||||||||||
Other expenses | 159 | 409 | (250) | (61 | %) | ||||||||||||||||||
Total expenses | 512 | 805 | (293) | (36 | %) | ||||||||||||||||||
Operating income/(loss) | 197 | (138) | 335 | n/a | |||||||||||||||||||
Interest expense, net
|
51 | 54 | (3) | (6 | %) | ||||||||||||||||||
Early extinguishment of debt | 18 | — | 18 | n/a | |||||||||||||||||||
Income/(loss) before income taxes | 128 | (192) | 320 | n/a | |||||||||||||||||||
Provision for/(benefit from) income taxes
|
35 | (40) | 75 | n/a | |||||||||||||||||||
Net income/(loss)
|
$ | 93 | $ | (152) | $ | 245 | n/a |
Six Months Ended June 30, | |||||||||||
2021 |
2020 (a)
|
||||||||||
Net income/(loss) | $ | 93 | $ | (152) | |||||||
Provision for/(benefit from) income taxes | 35 | (40) | |||||||||
Depreciation and amortization | 47 | 49 | |||||||||
Interest expense, net | 51 | 54 | |||||||||
Early extinguishment of debt | 18 | — | |||||||||
Stock-based compensation expense | 13 | 9 | |||||||||
Development advance notes amortization | 4 | 4 | |||||||||
Separation-related expenses | 3 | 1 | |||||||||
Impairments, net | — | 206 | |||||||||
Restructuring costs | — | 29 | |||||||||
Transaction-related expenses, net | — | 13 | |||||||||
Foreign currency impact of highly inflationary countries | 1 | 1 | |||||||||
Adjusted EBITDA
|
$ | 265 | $ | 175 |
Net Revenues
|
Adjusted EBITDA
|
||||||||||||||||||||||||||||||||||
2021 | 2020 |
% Change
|
2021 |
2020 (a)
|
% Change
|
||||||||||||||||||||||||||||||
Hotel Franchising
|
$ | 492 | $ | 425 | 16% | $ | 271 | $ | 196 | 38% | |||||||||||||||||||||||||
Hotel Management
|
217 | 242 | (10%) | 22 | 13 | 69% | |||||||||||||||||||||||||||||
Corporate and Other
|
— | — | n/a | (28) | (34) | n/a | |||||||||||||||||||||||||||||
Total Company
|
$ | 709 | $ | 667 | 6% | $ | 265 | $ | 175 | 51% |
Six Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
Total rooms | 752,500 | 754,700 | —% | ||||||||||||||
Global RevPAR (a)
|
$ | 29.89 | $ | 21.47 | 39% |
Six Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
% Change
|
|||||||||||||||
Total rooms | 45,500 | 58,200 | (22%) | ||||||||||||||
Global RevPAR (a)
|
$ | 47.04 | $ | 35.63 | 32% |
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES |
June 30, 2021 | December 31, 2020 |
Change
|
|||||||||||||||
Total assets
|
$ | 4,241 | $ | 4,644 | $ | (403) | |||||||||||
Total liabilities
|
3,181 | 3,681 | (500) | ||||||||||||||
Total stockholders’ equity
|
1,060 | 963 | 97 |
CASH FLOW |
Six Months Ended June 30, | |||||||||||||||||
2021 | 2020 |
Change
|
|||||||||||||||
Cash provided by/(used in)
|
|||||||||||||||||
Operating activities
|
$ | 180 | $ | (40) | $ | 220 | |||||||||||
Investing activities
|
(18) | (19) | 1 | ||||||||||||||
Financing activities
|
(552) | 630 | (1,182) | ||||||||||||||
Effects of changes in exchange rates on cash, cash equivalents and restricted cash
|
— | (1) | 1 | ||||||||||||||
Net change in cash, cash equivalents and restricted cash
|
$ | (390) | $ | 570 | $ | (960) |
LONG-TERM DEBT COVENANTS |
SEASONALITY |
COMMITMENTS AND CONTINGENCIES |
CRITICAL ACCOUNTING POLICIES |
WYNDHAM HOTELS & RESORTS, INC.
|
||||||||
Date: July 29, 2021 |
By:
|
/s/ Michele Allen
|
||||||
Michele Allen
|
||||||||
Chief Financial Officer
|
||||||||
Date: July 29, 2021 |
By:
|
/s/ Nicola Rossi
|
||||||
Nicola Rossi
|
||||||||
Chief Accounting Officer
|
Exhibit No. | Description | ||||
3.1 | |||||
3.2 | |||||
15.1* | |||||
31.1* | |||||
31.2* | |||||
32** | |||||
101.INS* |
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
||||
101.SCH* | XBRL Taxonomy Extension Schema Document | ||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
1 Year Wyndham Hotels & Resorts Chart |
1 Month Wyndham Hotels & Resorts Chart |
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