including proceeds from a planned securitization in late 2010. Bal Harbour capital
will be approximately $140 million.
For the three months ended March 31, 2010:
Adjusted EBITDA is expected to be approximately $135 million to $145 million
assuming:
REVPAR change at Same-Store Company Operated Hotels Worldwide of
-2% to flat in local currency (+1% to +3% in dollars at current exchange
rates).
REVPAR change at Branded Same-Store Owned Hotels Worldwide of -3% to
-5% in local currency (-1% to +1% in dollars at current exchange rates).
Management and franchise revenues will be up approximately 1% to 3%.
Operating income from our vacation ownership and residential businesses
will be flat to down $5 million.
Income from continuing operations, before special items, is expected to be
approximately $(8) million to flat, reflecting an effective tax rate of approximately
22%.
Interest expense is expected to be $63 million.
Depreciation and amortization is expected to be $83 million.
EPS before special items is expected to be approximately ($0.04) to flat.
Impact of SFAS 167
The Company adopted SFAS 167 on January 1, 2010. This new accounting rule impacts
the accounting for securitized vacation ownership loans. As a result of the adoption of this
rule, the Company expects its reported assets (accounts receivable and other assets) to
increase by approximately $400 million and its reported liabilities (short-term and long-term
debt) to increase by $445 million, prior to any tax effects. Also as a result of the
accounting change, vacation ownership pretax earnings for 2010 are expected to increase
by approximately $20 million to $23 million and EBITDA is expected to increase by
approximately $40 million to $45 million. The new accounting rule is not expected to have
any impact on the Company’s cash flow.
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