Send us Feedback

Wyndham Worldwide (WYN)
Analysis
SUMMARY
BULLS
BEARS
TOPICS
Data
DATA CENTRAL
STOCK CHART
Financials
SEC FILINGS
BALANCE
INCOME
CASH FLOW

WYN » Topics » Cash Flow Outlook for 2009

This excerpt taken from the WYN 10-Q filed May 7, 2009.
Cash Flow Outlook for 2009
 
During 2009, we anticipate cash flow will be neutral to positive. Borrowings outstanding on our revolving credit facility are expected to remain consistent at December 31, 2009 as compared to March 31, 2009. If economic conditions improve or deteriorate materially, we would expect the amounts noted above could change. Such changes could impact our cash flows either positively or negatively.
 
This excerpt taken from the WYN 10-K filed Feb 27, 2009.
Cash Flow Outlook for 2009
 
During 2009, we anticipate cash flow will be neutral to positive. Borrowings outstanding on our revolving credit facility are expected to remain consistent at December 31, 2009 as compared to December 31, 2008. Our current forecast is based upon the following primary assumptions (all amounts are approximated):
 
  i.  Net income of $271 million to $304 million including after-tax restructuring charges of $18 million to $27 million,
 
  ii.  Depreciation and amortization of $185 million to $195 million,
 
  iii.  Provision for loan losses of $325 million (24% of $1.2 billion gross VOI sales plus $150 million to $200 million of previously deferred percentage-of-completion revenue. The 24% is consistent with 2008.),
 
  iv.  Deferred tax increase of $65 million to $75 million based upon our cash tax rate being 25% as compared to our provision for income tax rate of 39%,
 
  v.  Stock-based compensation of $40 million,
 
  vi.  Net change of zero to $50 million decrease of vacation ownership inventory comprised of spending of $175 million to $225 million offset by $225 million in VOI cost of sales (16% of $1.2 billion gross VOI sales plus $150 million to $200 million of previously deferred percentage-of-completion revenue. The 16% assumption is comprised of cost of sales of 25%, partially offset by inventory recoveries.),
 
  vii.  Vacation ownership contract receivables portfolio growth representing originations, net of collections, of $150 million to $175 million,
 
  viii.  Net decrease in securitized debt of $325 million to $350 million resulting from a continued decline in vacation ownership securitized debt leverage,
 
  ix.  Working capital and other use of $225 million primarily related to the recognition of previously deferred vacation ownership percentage-of-completion revenue,


58

Table of Contents

 
  x.  Capital expenditures of $120 million to $130 million, and
 
  xi.  Dividend payments totaling $30 million.
 
For example, using the mid-points of the ranges noted above, the estimated change in cash for the full year of 2009 would be as follows:
 
         
    Amount  
 
Net income
  $ 288  
Depreciation and amortization
    190  
Provision for loan losses
    325  
Deferred income taxes
    70  
Stock-based compensation
    40  
Vacation ownership inventory
    25  
Vacation ownership contract receivables
    (163 )
Securitized borrowings, net
    (338 )
Working capital and other
    (225 )
Capital expenditures
    (125 )
Dividend to shareholders
    (30 )
         
Estimated change in cash for 2009
  $ 57  
         
 
If economic conditions improve or deteriorate materially, we would expect the amounts noted above could change. Such changes could impact our cash flows either positively or negatively.
 

EXCERPTS ON THIS PAGE:

10-Q
May 7, 2009
10-K
Feb 27, 2009

RELATED TOPICS for WYN:

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki