Wyndham Hotels & Resorts, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Sep. 30, 2018

The computation of basic and diluted earnings per share (“EPS”) is based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares, respectively. On June 1, 2018, the Company’s separation from Wyndham Worldwide was effected through a tax-free distribution to Wyndham Worldwide’s stockholders of one share of the Company’s common stock for every one share of Wyndham Worldwide common stock held as of the close of business on May 18, 2018. As a result, on June 1, 2018, the Company had 99.5 million shares of common stock outstanding. This share amount is being utilized for the calculation of basic and diluted earnings per share for all periods presented prior to the date of separation.

The following table sets forth the computation of basic and diluted EPS (in millions, except per-share data):



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Net income	$	58	$	58	$	118	$	138
Basic weighted average shares outstanding	99.8		99.8		99.8		99.8
Stock options and restricted stock units (“RSUs”)	0.3		—		0.1		—
Diluted weighted average shares outstanding	100.1		99.8		99.9		99.8
Earnings per share:
Basic	$	0.58	$	0.58	$	1.19	$	1.39
Diluted	0.58		0.58		1.19		1.39

Dividends:

Aggregate dividends paid to shareholders	$	25	$	—	$	52	$	—

Stock Repurchase Program

On May 9, 2018, the Company’s Board of Directors approved a stock repurchase program, which became effective immediately following the Distribution, under which it is authorized to repurchase up to $300 million of its outstanding common stock.

The following table summarizes stock repurchase activity under the current stock repurchase program (in millions, except per share data):



	Shares	Cost		Average Price Per Share
As of May 31, 2018	—	$	—	$	—
For the four months ended September 30, 2018	1.0	59		57.84
As of September 30, 2018	1.0	$	59	57.84

The Company had $241 million of remaining availability under its program as of September 30, 2018.