Wyndham Destinations expects to be free cash flow positive despite pandemic pressures

Oct. 28, 2020 7:17 AM ETTyler Technologies, Inc. (TYL)TYLBy: Clark Schultz, SA News Editor
  • Wyndham Destinations (NYSE:WYND) reports tours fell 70% in Q3.
  • Vacation ownership revenue was $477M vs. $482.4M consensus and adjusted EBITDA $96M vs. $94.8M consensus.
  • Exchange & Rentals revenue was $138M vs. $131.7M consensus and (44.8%) and adjusted EBITDA was $60M vs. $43.3M consensus.
  • CEO outlook: "Our focus on leisure travel, and our geographically diverse resort and sales and marketing footprint, gives us confidence for the fourth quarter and heading into 2021. We believe we are well-positioned to lead the broader travel industry in recovery."
  • Wyndham expects its resilient business model will lead it to be adjusted free cash flow positive for the full year.
  • As of September 30, the company's leverage ratio for covenant purposes was 4.1X, to fall within covenant restriction of 6.5X. Wyndham had $4.2B of corporate debt outstanding, which excluded $2.5B of non-recourse debt related to its securitized notes receivable. Additionally, the company had cash and cash equivalents of $1.3B.
  • WYND +2.00% premarket to $34.25.
  • Previously: Wyndham Destinations EPS beats by $0.50, misses on revenue (Oct. 28)

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