ORLANDO, FL—Wyndham Destinations Inc., vacation ownership and exchange company, reported positive third quarter 2019 financial results, including a 4% increase in net revenue.
“Our company reported strong quarterly results and increased our guidance for adjusted diluted EPS,” said Michael D. Brown, president/CEO, Wyndham Destinations. “We are continuing to see an expansion of Blue Thread sales and robust gross VOI sales, which increased 4% in the quarter. We remain committed to generating strong free cash flows and year-to-date we have returned $371 million of capital to shareholders in the form of dividends and share repurchases.”
He continued, “We recently completed two key transactions—the sale of Wyndham Vacation Rentals to Vacasa for $162 million and the acquisition by RCI of Alliance Reservations Network for $102 million. These transactions were important milestones for RCI and Wyndham Destinations as we focus on our core business and continue to execute on our key strategic objectives.”
Net revenue increased 4% to $1,105 million. Net income from continuing operations increased 3% to $135 million ($1.47 diluted EPS). Adjusted net income from continuing operations decreased 3% to $144 million ($1.57 adjusted diluted EPS). Adjusted EBITDA decreased 1% to $267 million.
Vacation ownership revenues increased 5%, primarily due to a 4% increase in gross vacation ownership interest (VOI) sales to $663 million. Tours increased 4% year-over-year and volume per guest (VPG) decreased 1%.
Adjusted EBITDA was flat at $203 million, with revenue growth of 5% offset by higher inventory costs and increased costs in sales and marketing.
Gross vacation ownership contract receivables grew 4% year-over-year to $3.9 billion. The provision for loan loss as a percentage of gross VOI sales, net of fee-for-service sales, was 20.3% for the third quarter of 2019, an improvement from 20.8% during the third quarter of 2018.
Exchange & rentals revenue increased 3%, primarily due to incremental revenue from the acquisition of Alliance Reservations Network, partially offset by a loss of Wyndham Hotels and Resorts servicing revenue as a result of the spin-off.
Adjusted EBITDA increased 5% to $83 million, primarily driven by lower general and administrative costs.