Wyndham Worldwide Corporation (NYSE:WYN) Q1 2018 Earnings Conference Call Transcript
May 02, 2018 • 08:30 am ET
Welcome to the Wyndham Worldwide First Quarter 2018 Earnings Conference Call. Currently, all phone lines are in listen-only mode. Later, there'll be an opportunity to ask questions during a question-and-answer session. (Operator Instructions) 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 C. Happer
Good morning. Thank you for joining us. With me today are Steve Holmes, our CEO; and David Wyshner, our CFO. I'm also pleased to announce that we have two additional speakers today, Geoff Ballotti, CEO of Wyndham Hotel Group; and Mike Brown, CEO of our Wyndham Vacation Ownership business. In addition, Mike Hug, CFO of Wyndham Vacation Ownership is with us and will participate in the Q&A session.
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 and other filings with the SEC. We will also be referring to a number of non-GAAP measures. Corresponding GAAP measures and a reconciliation of non-GAAP measures to GAAP metrics are provided in the press release, which is available on our Investor Relations website at wyndhamworldwide.com. Steve?
Stephen P. Holmes
Thanks, Margo. Good morning and thank you for joining us today on what will be our last earnings call as Wyndham Worldwide. It has been an extraordinary 12 years, and I'm pleased that we can report a typical Wyndham quarter with strong growth across our businesses resulting in double-digit adjusted EBITDA and EPS growth.
Our teams delivered these results, while executing against several significant strategic initiatives. In January, we announced an agreement to acquire the hotel franchising and hotel management businesses of La Quinta. The addition of La Quinta's 900 hotel system will build on our strong mid scale presence, expand our reach further into the fast growing upper mid-scale segment and position us to be the preferred partner of developers and guests.
We remain on track to close the transaction in the second quarter and the financings to fund the acquisition are already in place. In February, shortly after we reported our year-end results, we announced an agreement to sell our European vacation rental business to Platinum Equity for $1.3 billion in cash. We conducted a rigorous strategic review process that generated strong interest from multiple parties, which demonstrated what we already knew, these are great businesses. We are confident that this business will have a bright future and will provide significant opportunities for its associates and business partners as part of Platinum's portfolio. And as important, we are progressing rapidly toward a spin off of Wyndham Hotels & Resorts.
License, cross-marketing and transition services agreements are in place. We have established separate public company infrastructures, organizational designs and corporate identities. We have determined our go forward capital structures and both companies are