Dividend
In October 2009, the Company’s Board of Directors declared its annual dividend of $0.20
per share. The dividend was paid by the Company on January 14, 2010 to holders of
record on December 31, 2009.
Balance Sheet
At December 31, 2009, the Company had total debt of $2.960 billion and cash and cash
equivalents of $141 million (including $54 million of restricted cash), or net debt of $2.819
billion, compared to net debt of $3.207 billion and $3.517 billion as of September 30, 2009
and December 31, 2008, respectively.
At December 31, 2009, debt was approximately 78% fixed rate and 22% floating rate and
its weighted average maturity was 5.1 years with a weighted average interest rate of
6.73%. The Company had cash (including current restricted cash) and availability under
the domestic and international revolving credit facility of approximately $1.735 billion.
During the fourth quarter of 2009, the Company completed a series of dispositions and
financing transactions that resulted in cash proceeds of approximately $650 million as
outlined below:
The Company sold non-core assets for cash proceeds of approximately $227
million.
The Company sold approximately $200 million of vacation ownership notes
receivable realizing cash proceeds of $166 million. The Company recorded a gain
on the sale of these receivables of approximately $19 million. In addition, the terms
of the Company’s June 2009 securitization were amended, resulting in additional
cash proceeds of approximately $9 million and a gain of $4 million.
The Company completed a public offering of $250 million of 7.150% Senior Notes
due 2019 and used the proceeds to complete a $300 million tender offer to
purchase $195 million of its 7.875% Senior Notes due 2012 and $105 million of its
6.250% Senior Notes due 2013.
IRS Tax Settlement
In January 2009, the Company and the IRS reached an agreement in principle to settle the
litigation pertaining to the tax treatment of the Company’s 1998 disposition of World
Directories, Inc. Under the proposed settlement, the Company expects to receive a refund
in 2010 of over $200 million as a result of tax payments previously made.
Results for the Twelve Months Ended December 31, 2009
The loss from continuing operations was $1 million or $0.00 per share in 2009, compared
to income from continuing operations of $249 million, or $1.34 per share in 2008.
Excluding special items, income from continuing operations was $188 million, or $1.02 per
share in 2009, compared to $400 million, or $2.16 per share in 2008. Net income was $73
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