DALLAS–(BUSINESS WIRE)–Dec. 19, 2000–In comments prepared for a conference call with security analysts and other interested investors this morning, Wyndham International, Inc. (NYSE:WYN) will state that it is comfortable with consensus estimates for fourth quarter and full-year 2000 earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted.
Wyndham will also provide guidance for year 2001 EBITDA, as adjusted. When adjusted for assets sales completed through 2000 and expected in early 2001, the company stated that it expected EBITDA, as adjusted, to be approximately $661.0 million or 6.5% over the current adjusted EBITDA run rate of $620.0 million. In August, Wyndham previously stated that it expected its 2001 EBITDA growth to be in a range of 5% and 8%. For 2001, the company believes RevPAR growth will be approximately 4%, which is at the top of the range of 2.5%-4% it announced last August.
The company will announce that it has divested $416.0 million in non-core, non-strategic assets during 2000 at an average EBITDA multiple of 9.3x. The company will state that it is targeting the sale or swap of approximately $500 million in non-core, non-strategic assets in 2001. Wyndham previously announced a three-year plan to dispose of all non-core, non-strategic assets, with the proceeds to be used primarily to reduce debt. The company will disclose that it has budgeted $184 million for capital expenditures in 2001.
A replay of the December 19 conference call is available for investors through Friday, December 22, 2000 by calling (800) 475-6701 in the U.S. For international callers, the conference call is available at (320) 365-3844. The access code is 554497. The replay is also available on www.wyndham.com through December 26, 2000.
Wyndham International, Inc. offers upscale and luxury hotel and resort accommodations through proprietary lodging brands and a management services division. Based in Dallas, Wyndham International owns, leases, manages and franchises hotels and resorts in the United States, Canada, Mexico, the Caribbean and Europe. For more information, visit www.wyndham.com.
This press release contains certain forward-looking statements within the meaning of Sections 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including projections about future operating results. The company's results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause a difference include, but are not limited to, risks associated with the availability of equity or debt financing at terms and conditions favorable to Wyndham; risks associated with the course of litigation; Wyndham's ability to effect sales of assets on favorable terms and conditions; Wyndham's ability to integrate acquisitions into its operations and management; risks associated with the hotel industry, real estate and stock markets in general; competition within the lodging industry; the impact of general economic conditions; risks associated with debt financing; and other risks and uncertainties set forth in the company's annual, quarterly and current reports and proxy statements.
2000 Run Rate and 2001 Expected
(dollars in millions)
Original EBITDA Guidance – 2000 $675.4
Performance Based Upward Guidance 9.3
Adjusted EBITDA Guidance – 2000 684.7
Run Rate Adjustment for Asset Sales – Q1 & Q2 (37.0)
Run Rate EBITDA Q2 2000 647.7
Run Rate Adjustment for Asset Sales – Q3
plus Interstate Transaction and Malmaison Sale (20.0)
Run Rate EBITDA Q3 2000 627.7
Run Rate Adjustment for Expected Asset Sales
Q1 2001 (see note below) (7.0)
Run Rate EBITDA Q4 2000 $620.7
2001 EBITDA Growth – Same Store Hotels – 6.5% 40.6
EBITDA Guidance – 2001 $661.3
NOTE: The EBITDA for Expected Asset Sales in Q1 2000 is not included
in the full year 2001 EBITDA Guidance of $661.3 million.
Free Cash Flow Summary
2000 and 2001 (unaudited)
(dollars in millions)
FY 2000 FY 2001
EBITDA $ 658 $ 661
Interest (338) (324)
Cash Taxes (32) (29)
Preferred Dividends (29) (29)
Operating Cash Flow Available 259 279
Net Asset Sales Proceeds (1) 338 59
Total Cash Available 597 338
Capital Spending (160) (184)
Wyndham Anatole Contract (67) (14)
Non-Recurring Charges (2) (103) 12
Other Expenses (3) (27) —
Free Cash Flow $ 240 $ 152
Cash Used to Reduce Debt (240) (59)
Cash Available for Debt Reduction/Development
Plan in 2001 $ — $ 93
Term Loan $ 1,300 $ 1,290
Revolver 100 106
Increasing Rate Loans (IRLs) 617 587
Mortgage Debt and Other 1,387 1,362
Total Debt $ 3,404 $ 3,345
Less: Unrestricted Cash (102) (102)
Net Debt $ 3,302 $ 3,243
Total Leverage Ratio (4) 5.38x 5.20x
Interest Coverage Ratio (4) 2.10x 2.10x
1) In 2001, the EBITDA for Expected Asset Sales is not included in
the full year 2001 EBITDA Guidance of $661.3 million.
2) Non-Recurring Charges FY 2000
Summerfield Earnout $ 33
Net Hedging Expense 28
Chicago St. Claire Buy Out 21
Great Eastern Buyout 4
Riverfront New Orleans Earnout 10
La Guardia Earnout 7
Total Non-Recurring Charges $ 103
3) Other Expenses is comprised of various immaterial items including
changes in working capital.
4) Credit ratio calculations are based on Credit Agreement
CONTACT: Wyndham International, Inc., Dallas
Fred Stern, 214/863-1258
Elizabeth Williams, 214/863-1265