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Mar 31, 2021

Wyndham Q1 2021 Earnings Report

Wyndham's Q1 2021 results were reported, showing a decline in revenues but an increase in net income and adjusted EBITDA, with the company updating its 2021 projections.

Key Takeaways

Wyndham Hotels & Resorts reported a decline in revenues from $410 million in Q1 2020 to $303 million in Q1 2021. However, net income increased to $24 million, or $0.26 per diluted share, compared to $22 million, or $0.23 per diluted share, in the same period last year. Adjusted EBITDA was $97 million. The company updated its 2021 projections, anticipating net rooms growth of 1% to 2%.

Diluted earnings per share was $0.26, and adjusted diluted earnings per share was $0.36.

Net income was $24 million and adjusted net income was $33 million.

Adjusted EBITDA was $97 million.

Global RevPAR declined 11% compared to first quarter 2020 and 31% compared to first quarter 2019 in constant currency.

Total Revenue
$303M
Previous year: $410M
-26.1%
EPS
$0.36
Previous year: $0.5
-28.0%
$24.9
Previous year: $27.7
-10.0%
797.2K
Previous year: 828.3K
-3.8%
U.S. RevPAR
$30.6
Gross Profit
$140M
Previous year: $166M
-15.7%
Cash and Equivalents
$531M
Previous year: $749M
-29.1%
Free Cash Flow
$59M
Previous year: $10M
+490.0%
Total Assets
$4.64B
Previous year: $5.16B
-10.0%

Wyndham

Wyndham

Wyndham Revenue by Segment

Forward Guidance

The Company is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead; however, the Company is updating the projections provided in February:

Positive Outlook

  • Net rooms growth of 1% to 2%, consistent with February's projection.
  • Every point of RevPAR change versus 2020 is now expected to generate approximately $2.8 million of adjusted EBITDA change versus 2020 (increased from $2.5 million per point in February).
  • License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements, consistent with February's projection.
  • Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues, consistent with February's projection.
  • The Company does not expect any meaningful special-item cash outlays in 2021, consistent with February's projection.