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Mar 31, 2020

Travel + Leisure Q1 2020 Earnings Report

Wyndham Destinations' first quarter performance was negatively impacted by the COVID-19 pandemic, resulting in a net loss. The company focused on preserving cash flow and liquidity amidst resort closures and economic downturn.

Key Takeaways

Wyndham Destinations reported a challenging first quarter due to the COVID-19 pandemic. While January and February showed strong performance, March saw significant declines in VOI sales and tours due to resort closures. A $225 million provision charge for anticipated increased defaults further impacted revenue and adjusted EBITDA. Despite these challenges, the company maintained a strong liquidity position with $1 billion in cash and cash equivalents and completed a $325 million private securitization in April.

Net VOI sales were $90 million, with gross VOI sales reaching $413 million.

The company reported a diluted loss per share of $1.54, and an adjusted diluted loss per share of $0.98.

Net loss from continuing operations was $134 million, with a negative adjusted EBITDA of $44 million.

The company had $1 billion in cash and cash equivalents at the end of March and completed a $325 million private securitization in April.

Total Revenue
$558M
Previous year: $918M
-39.2%
EPS
-$0.98
Previous year: $1.03
-195.1%
Gross VOI sales
$413M
Tours
162K
Exchange revenue per member
$137
Gross Profit
$166M
Previous year: $465M
-64.3%
Cash and Equivalents
$1B
Previous year: $217M
+360.8%
Free Cash Flow
$36M
Previous year: $132M
-72.7%
Total Assets
$7.78B
Previous year: $7.37B
+5.5%

Travel + Leisure

Travel + Leisure

Travel + Leisure Revenue by Segment

Forward Guidance

The company expects net cash provided by operating activities from continuing operations and adjusted free cash flow to be positive in the first half of 2020.

Revenue & Expenses

Visualization of income flow from segment revenue to net income