Benzinga | Jul 20, 2020 09:17AM EDT

Wyndham Destinations Sees Prelim. Q2 Sales $343M

Preliminary Second Quarter 2020 Highlights:

The Company expects to report:

* Net revenues of $343 million

* Net loss from continuing operation of ($164) million

* Adjusted EBITDA of $16 million (see table below for non-GAAP reconciliation) $15 million was timing favorability of employee retention tax credits

* Net cash provided by operating activities from continuing operations of $73 million ($130 million for the six months ended June 30)

* Adjusted Free cash flow from continuing operations of $166 million ($88 million for the six months ended June 30) (see table below for non-GAAP reconciliation)

* Cash and cash equivalents at the end of June of $1.05 billion

Update to 2020 Outlook

The Company is withdrawing its previous outlook for 2020 full year Adjusted Free cash flow from continuing operations of $100 million to $150 million and instead is targeting to be Adjusted Free cash flow positive for the full year. The Company's previous guidance in early May was based on pre-opening projections. The revised outlook is based on current trends including the continued uncertainty around COVID-19 and related impacts to travel. The Company's new guidance assumes a 60% reduction in tour volumes in the second half of 2020 over the prior year and reflects continued elevated level of vacation cancellation activity. New booking activity is in line with prior year levels but cancellations have remained elevated for longer than anticipated and reflects consumer caution around travel in light of the spread of COVID-19 in the U.S. The Company had previously withdrawn its normal comprehensive outlook on March 25, 2020.