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The reportable segments presented below represent the Company's operating segments for which separate financial information is available and is utilized on a regular basis by its chief operating decision maker to assess performance and allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its operating segments. Management evaluates the operating results of each of its reportable segments based upon net revenues and “adjusted EBITDA”, which is defined as net income (loss) excluding interest expense, depreciation and amortization, impairment charges, restructuring and related charges, contract termination costs, transaction-related items (acquisition-, disposition- or separation-related), foreign currency impacts of highly inflationary countries, stock-based compensation expense and income taxes. Wyndham Hotels believes that adjusted EBITDA is a useful measure of performance for its segments which, when considered with U.S. GAAP measures, allows a more complete understanding of its operating performance. The Company uses these measures internally to assess operating performance, both absolutely and in comparison to other companies, and to make day to day operating decisions, including in the evaluation of selected compensation decisions. The Company's presentation of adjusted EBITDA may not be comparable to similarly-titled measures used by other companies.
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Three Months Ended June 30, |
|
2020 |
|
2019 |
|
Net Revenues |
|
Adjusted EBITDA |
|
Net Revenues |
|
Adjusted EBITDA |
Hotel Franchising |
$ |
182 |
|
|
$ |
83 |
|
|
$ |
331 |
|
|
$ |
162 |
|
Hotel Management |
76 |
|
|
(4 |
) |
|
201 |
|
|
16 |
|
Total Reportable Segments |
258 |
|
|
79 |
|
|
532 |
|
|
178 |
|
Corporate and Other |
— |
|
|
(16 |
) |
|
1 |
|
|
(19 |
) |
Total Company |
$ |
258 |
|
|
$ |
63 |
|
|
$ |
533 |
|
|
$ |
159 |
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The table below is a reconciliation of net income (loss) to adjusted EBITDA.
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Three Months Ended June 30, |
|
2020 |
|
2019 |
Net (loss)/income |
$ |
(174 |
) |
|
$ |
26 |
|
(Benefit)/provision for income taxes |
(48 |
) |
|
10 |
|
Depreciation and amortization |
25 |
|
|
27 |
|
Interest expense, net |
28 |
|
|
26 |
|
Stock-based compensation expense |
5 |
|
|
4 |
|
Impairments, net |
206 |
|
|
45 |
|
Restructuring costs |
16 |
|
|
— |
|
Transaction-related expenses, net |
5 |
|
|
11 |
|
Separation-related expenses |
— |
|
|
1 |
|
Contract termination costs |
— |
|
|
9 |
|
Adjusted EBITDA |
$ |
63 |
|
|
$ |
159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2020 |
|
2020 |
|
2019 |
|
Net Revenues |
|
Adjusted EBITDA |
|
Net Revenues |
|
Adjusted EBITDA |
Hotel Franchising |
$ |
425 |
|
|
$ |
191 |
|
|
$ |
600 |
|
|
$ |
275 |
|
Hotel Management |
242 |
|
|
13 |
|
|
398 |
|
|
31 |
|
Total Reportable Segments |
667 |
|
|
204 |
|
|
998 |
|
|
306 |
|
Corporate and Other |
— |
|
|
(34 |
) |
|
3 |
|
|
(36 |
) |
Total Company |
$ |
667 |
|
|
$ |
170 |
|
|
$ |
1,001 |
|
|
$ |
270 |
|
The table below is a reconciliation of net income (loss) to adjusted EBITDA.
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2020 |
|
2020 |
|
2019 |
Net (loss)/income |
$ |
(152 |
) |
|
$ |
47 |
|
(Benefit)/provision for income taxes |
(40 |
) |
|
15 |
|
Depreciation and amortization |
49 |
|
|
56 |
|
Interest expense, net |
54 |
|
|
50 |
|
Stock-based compensation expense |
9 |
|
|
7 |
|
Impairments, net |
206 |
|
|
45 |
|
Restructuring costs |
29 |
|
|
— |
|
Transaction-related expenses, net |
13 |
|
|
18 |
|
Separation-related expenses |
1 |
|
|
22 |
|
Contract termination costs |
— |
|
|
9 |
|
Foreign currency impact of highly inflationary countries |
1 |
|
|
1 |
|
Adjusted EBITDA |
$ |
170 |
|
|
$ |
270 |
|
|