Wyndham Worldwide expects cash flow trends will mirror EBITDA trends

By Devika Patel

Knoxville, Tenn., Oct 26 – Wyndham Worldwide Corp. expects its cash flow to improve to $800 million in 2017, mirroring the company’s long-term EBITDA trends

“Our neighborhood target for free cash flow is $800 million and we are committed to try and deliver that in 2017,” executive vice president and chief financial officer Thomas G. Conforti said on the company’s third quarter earnings conference call on Wednesday.

“We believe we’re in a comfortable CapEx at this point, which is in the low $200 millions.

“We expect that the free cash flow trends over the longer term should mirror the EBITDA trends.

“We feel like we’ve reached steady state on working capital.

“We feel our CapEx number’s in a comfortable zone so there’s no reason to believe that the longer term trends shouldn’t mirror the EBITDA longer term trends,” Conforti said.

Highlights

The company’s free cash flow was $650 million for the nine months ended Sept. 30, compared with $660 million for the same period in 2015, reflecting currency movements partially offset by lower capital expenditures.

Wyndham’s EBITDA was $107 million in the third quarter compared with $83 million in the prior year quarter.

Adjusted EBITDA grew 8% to $117 million.

For the full year 2016, the company expects revenues of approximately $5.650 billion, adjusted net income of approximately $630 million and adjusted EBITDA of approximately $1.38 billion.

The hospitality and lodging company is based in Bethesda, Md.

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