It’s a cruel summer for Wyndham Destinations Inc – Idaho Reporter

NYSE, Real Estate

It’s a cruel summer for Wyndham Destinations Inc

Wyndham Destinations (NYSE:WYND) reported today its Q1 2020 financial results. “Our business performed well in January and February as we were off to a strong start to the year.” said Michael D. Brown, president and CEO of Wyndham Destinations ” In March and April our teams met the call to action to confront the health and economic crisis resulting from COVID-19.”

Mr. Brown added that their balance sheet is strong and that Wyndham “had $1 billion of cash at the end of the quarter. At the end of April, we further enhanced our liquidity position by completing a $325 million ABS transaction and we project to be adjusted free cash flow positive for the first half of the year. As a result, our Board reaffirmed the dividend policy and intends to declare the second quarter cash dividend of $0.50 per share.”

These are key takeaways from this report:

Net VOI sales of $90 million; gross VOI sales of $413 million (1) 
Diluted loss per share from continuing operations of $1.54 (adjusted diluted loss per share of $0.98)
Net loss from continuing operations of $134 million and negative adjusted EBITDA of $44 million
In anticipation of increased defaults due to the impact of COVID-19, a $225 million provision charge impacted revenue, resulting in a $170 million negative impact to adjusted EBITDA
Vacation Ownership revenue declined 40% to $409 million in the first quarter
Net cash provided by operating activities from continuing operations of $57 million (negative adjusted free cash flow of $78 million)
During the first quarter of 2020, the Company repurchased 3.1 million shares of common stock for $125 million
Cash and cash equivalents of $1.0 billion at the end of March
The Company’s Board of Directors reaffirmed its dividend policy and intends to declare the second quarter cash dividend of $0.50 per share in mid-May

Wyndham Destinations will hold a conference call with investors to discuss the Company’s results and forward-looking information today at 8:30 a.m. ET. Participants may listen to a simultaneous webcast of the conference call, which may be accessed through the Company’s website at investor.wyndhamdestinations.com, or by dialing 877-876-9173, passcode WYND, 10 minutes before the scheduled start time.

WYND stock price fell down to $23.80 on Tuesday and it is expected to go down on Q1 results on Wednesday.

The biggest positive sign for hospitality industry and tourism in general is the fact that booking and hotel search sites are reporting a rebound in May compared to April.

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