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

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Provided below are selected unaudited quarterly financial data for the periods ended:



		2018
		March 31			June 30			September 30			December 31
Net Revenues
	Hotel Franchising	$	203		$	289		$	348		295
	Hotel Management	99			146			252			229
	Corporate and Other	—			—			4			3
	Total Company	302			435			604			527
Total expenses		246			396			499			445
Operating income		56			39			105			82
Interest expense, net		1			10			24			25
Income before income taxes		55			29			81			57
Provision for income taxes		16			8			23			14
Net income		$	39		$	21		$	58		$	43

Diluted earnings per share		$	0.40		$	0.21		$	0.58		$	0.43
Diluted weighted average shares outstanding		99.8			100.0			100.1			99.2

Reconciliation of Net income to Adjusted EBITDA
Net income		$	39		$	21		$	58		$	43
	Provision for income taxes	16			8			23			14
	Depreciation and amortization	19			22			30			29
	Interest expense, net	1			10			24			25
	Stock-based compensation	3			1			3			2
	Separation-related expenses	12			35			17			14
	Transaction-related expenses, net	2			28			7			(1		)
	Foreign currency impact of highly inflationary countries	—			—			4			(1		)
Adjusted EBITDA		$	92		$	125		$	166		$	125

Adjusted EBITDA by segment
	Hotel Franchising	$	86		$	129		$	178		122
	Hotel Management	16			8			5			18
	Corporate and Other	(10		)	(12		)	(17		)	(15		)
	Total Adjusted EBITDA	$	92		$	125		$	166		$	125



		2017
		March 31			June 30			September 30			December 31
Net Revenues
	Hotel Franchising	$	191		$	233		$	258		$	215
	Hotel Management	98			98			89			97
	Corporate and Other	—			—			—			—
	Total Company	289			331			347			312
Total expenses		232			247			245			304
Operating income		57			84			102			8
Interest expense, net		2			2			2			1
Income before income taxes		55			82			100			7
Provision for income taxes ^(a)		22			34			42			(85		)
Net income		$	33		$	48		$	58		$	92

Diluted earnings per share		$	0.33		$	0.48		$	0.58		$	0.92
Diluted weighted average shares outstanding		99.8			99.8			99.8			99.8

Reconciliation of Net income to Adjusted EBITDA
Net Income		$	33		$	48		$	58		$	92
	Provision for income taxes ^(a)	22			34			42			(85		)
	Depreciation and amortization	18			19			19			19
	Interest expense, net	2			2			2			1
	Stock-based compensation	2			2			2			3
	Separation-related expenses	—			—			—			3
	Transaction-related expenses, net	—			—			1			2
	Impairment expense	—			—			—			41
	Restructuring	1			—			—			—
Adjusted EBITDA		$	78		$	105		$	124		$	76

Adjusted EBITDA by segment
	Hotel Franchising	$	78		$	111		$	132		$	81
	Hotel Management	9			4			1			6
	Corporate and Other	(9		)	(10		)	(9		)	(11		)
	Total Adjusted EBITDA	$	78		$	105		$	124		$	76

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(a)	The Provision for income taxes for the three months ended December 31, 2017, reflects the benefit from U.S tax reform of $85 million. See Note 8 - Income Taxes for more information.