Wyndham Worldwide Corporation (NYSE:WYN) Q4 2015 Earnings Conference Call - Preliminary Transcript

Feb 09, 2016 • 08:30 am ET


Wyndham Worldwide Corporation (NYSE:WYN) Q4 2015 Earnings Conference Call - Preliminary Transcript


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Welcome to the Wyndham Worldwide Fourth Quarter Earnings Conference Call. Your lines have been placed on listen-only until the question-and-answer session. Today's conference is being recorded. If you have any objections, you may disconnect at this time.

I will now turn the call over to Margo Happer, Senior Vice President of Investor Relations.

Margo Happer

Good morning. Thank you for joining us. With me today are Steve Holmes, our CEO; and Tom Conforti, our CFO.

Before we get started, I want to remind you that our remarks today contain forward-looking statements. These statements are subject to risk factors that may cause our actual results to differ materially from those expressed or implied. These risk factors are discussed in detail in our Form 10-K filed February 13, 2015 with the SEC.

We will also be referring to a number of non-GAAP measures. The reconciliation of these measures to GAAP is provided in the tables to the press release. It is also available on the Investor Relations section of our website at wyndhamworldwide.com. Steve?

Steve Holmes

Thanks, Margo. Good morning and thank you for joining us. As you saw from the release, we posted a strong close to a great year. Looking forward, we are excited about what lies ahead in 2016 which we believe will be a great year for leisure travel.

With the wide range of places to stay, Wyndham Worldwide is uniquely positioned to welcome people to travel the way they want and where they want. This gives us great confidence in our prospects and is reflected in our Board's decision to raise our quarterly dividend by 19%, and increase our share repurchase authorization by $1 billion.

Tom will focus on fourth quarter results but first let me summarize the year which was terrific from both an operational and a financial perspective. On a constant currency basis and excluding acquisitions and a divestiture, we grew revenue 6% and adjusted EBITDA 8% in 2015. On the same basis, adjusted EPS grew 17% reflecting strong operating performance across the company supported by our share repurchase program.

Wyndham Hotel Group achieved 11% adjusted EBITDA growth on a constant currency basis excluding acquisitions and including the increase license fee paid by Wyndham vacation ownership or 7% excluding the fee. We successfully acquired and integrated Dolce, which significantly enhanced our presence in the managed hotel space and is performing better than our expectations.

We also developed and launched a new cloud based strategy for our property management and central reservation systems. Finally we introduced The Wyndham Wizard to millions of consumers and made great progress on our new award winning Wyndham awards loyalty program. Wyndham Rewards is one of the threads that weave Wyndham Worldwide together driving a powerful marketing and value proposition to consumers across our travel brands.

The newly named Wyndham Destination Network formerly known as Wyndham Exchange & Rentals grew adjusted EBITDA 6% on a constant currency basis excluding acquisitions and a divestiture. We are moving to a more expensive vision of the business which combine