Annual report pursuant to Section 13 and 15(d)

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

v3.19.3.a.u2
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited)
12 Months Ended
Dec. 31, 2019
Quarterly Financial Data Disclosure [Abstract]  
Quarterly Financial Data (Unaudited)

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