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Dec 31, 2020
Wyndham Q4 2020 Earnings Report
Wyndham's Q4 2020 results were announced, showing a decrease in revenue but strong adjusted EBITDA and free cash flow generation.
Key Takeaways
Wyndham Hotels & Resorts reported a net loss of $7 million for Q4 2020, with revenues declining to $296 million from $492 million in the same quarter of the previous year. Despite the revenue decrease, the company highlighted strong adjusted EBITDA and free cash flow generation. The company also increased its dividend by 100%.
Diluted loss per share was $0.08, and adjusted diluted earnings per share was $0.07.
Net loss was $7 million, with adjusted net income at $7 million.
Adjusted EBITDA was $56 million.
Global comparable RevPAR decreased by 33% year-over-year.
Revenue by Segment
Forward Guidance
Wyndham is not providing a complete outlook for full-year 2021 given the RevPAR uncertainties ahead.
Positive Outlook
- Net rooms growth of 1% to 2%.
- Every point of RevPAR change versus 2020 is expected to generate approximately $2.5 million of adjusted EBITDA change versus 2020. This estimate does not include impacts from license fees or the marketing funds.
- License fees are expected to be $70 million reflecting the minimum levels outlined in the underlying agreements.
- Marketing, reservation and loyalty expenses are not expected to exceed marketing, reservation and loyalty revenues. As such, the Company expects no meaningful impact to full-year 2021 adjusted EBITDA from the marketing, reservation and loyalty funds.
- The Company does not expect any meaningful special-item cash outlays in 2021.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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