Wyndham Destinations Releases Preliminary Fourth Quarter Operating Metrics

Wyndham Destinations, Inc. (NYSE:WYND) is releasing preliminary operating metrics for the fourth quarter of 2020:

• Gross vacation ownership interest (VOI) sales of $281 million ⁽¹⁾
• VOI sales were impacted by increased restrictions related to COVID-19, particularly in Hawaii and California where resorts were closed in December
• Fourth quarter gross VOI sales were 51.8% lower than the prior year with tours 63.8% lower year-over-year, partially offset by a 23.8% increase in VPG
• Excluding Hawaii, and California in December, fourth quarter gross VOI sales declined 48.5% and tours declined 61.0% year-over-year

“We were pleased to finish the year strong while adhering to important and necessary safety guidelines for the benefit of our owners, members and associates,” commented Michael D. Brown, president and CEO of Wyndham Destinations. “Restrictions in California and certain other markets curtailed the momentum we had coming out of the summer. However, the underlying strength at our resorts that remained fully open support our expectation of a strong return of leisure travel in 2021. Our bookings for the summer of 2021 and beyond continue to be strong.”

The Company is reaffirming the following:

• Expect the loan loss provision associated with fourth quarter gross VOI sales to remain below 20%
• Continue to expect positive adjusted free cash flow for the full year of 2020

The operating metrics reported in this release are preliminary and subject to change as the Company completes its financial statements for the fourth quarter and full year 2020.

(1)

Gross VOI sales, a non-GAAP measure, represents sales of vacation ownership interests (VOIs), including sales under the fee-for-service program before the effect of loan loss provisions. We believe that Gross VOI sales provide an enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period. This measure is presented only on a non-GAAP basis because not all of the information necessary for a quantitative reconciliation of this preliminary estimated non-GAAP financial measure to the most directly comparable GAAP financial measure is available without unreasonable effort; primarily due to the ongoing calculation of the company’s loan loss provision. A full reconciliation of this non-GAAP metric will be included in the company’s earnings release reporting on its fourth quarter results.