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

Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

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



		2019
		March 31			June 30			September 30			December 31
Net revenues
	Hotel Franchising	$	269		$	331		$	379		$	300
	Hotel Management	197			201			180			190
	Corporate and Other	2			1			1			2
	Total Company	468			533			560			492
Total expenses		418			471			469			389
Operating income		50			62			91			103
Interest expense, net		24			26			25			25
Income before income taxes		26			36			66			78
Provision for income taxes		5			10			21			14
Net income		$	21		$	26		$	45		$	64

Diluted earnings per share		$	0.22		$	0.27		$	0.47		$	0.68
Diluted weighted average shares outstanding		98.2			97.4			96.3			95.0

Reconciliation of net income to adjusted EBITDA
Net income		$	21		$	26		$	45		$	64
	Provision for income taxes	5			10			21			14
	Depreciation and amortization	29			27			26			28
	Interest expense, net	24			26			25			25
	Stock-based compensation expense	3			4			4			4
	Impairment, net	—			45			—			—
	Contract termination costs	—			9			34			(1		)
	Transaction-related expenses, net	7			11			12			10
	Separation-related expenses	21			1			—			—
	Transaction-related item	—			—			20			—
	Restructuring	—			—			—			8
	Foreign currency impact of highly inflationary countries	1			—			3			1
Adjusted EBITDA		$	111		$	159		$	190		$	153

Adjusted EBITDA by segment
	Hotel Franchising	$	113		$	162		$	195		$	151
	Hotel Management	16			16			13			21
	Corporate and Other	(18		)	(19		)	(18		)	(19		)
	Total adjusted EBITDA	$	111		$	159		$	190		$	153



		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 expense	3			1			3			2
	Transaction-related expenses, net	2			28			7			(1		)
	Separation-related expenses	12			35			17			14
	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