SILVER SPRING, Md. Oct. 26, 2011 /PRNewswire/ -- Choice Hotels International, Inc., (NYSE:CHH) today reported the following highlights for third quarter 2011:
-- Diluted earnings per share ("EPS") for third quarter 2011 were $0.71
compared to $0.68 for the same period of the prior year.
-- Excluding special items, adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA") were $64.9 million for the
three months ended September 30, 2011, compared to $57.3 million for the
same period of 2010. Operating income increased 14% from $54.9 million
for the three months ended September 30, 2010 to $62.4 million for the
same period of the current year.
-- Franchising revenues increased 8.5% from $79.9 million for the three
months ended September 30, 2010 to $86.7 million for the same period of
2011. Total revenues for the three months ended September 30, 2011
increased 5% to $192.3 million compared to the same period of 2010.
-- Excluding special items, adjusted selling, general and administrative
("SG&A") expenses declined 3% from $22.9 million for third quarter of
2010 to $22.1 million for the same period of the current year. SG&A
expenses were $22.6 million for the three months ended September 30,
2011, compared to $23.2 million for the same period of 2010.
-- Changes in the fair value of investments held in certain of the
company's retirement plans are accounted for as investment gains and
losses and are presented under the caption Other (gains) and losses with
a corresponding adjustment to compensation expense in SG&A. During the
three months ended September 30, 2011, the company recorded $1.2 million
in investment losses related to these investments. As a result of the
decline in the value of these investments, the deferred compensation
liability to the participants also declined resulting in a $1.3 million
reduction of compensation expense reflected in SG&A expenses. During the
three months ended September 30, 2010, investment gains totaling $0.7
million were recorded in Other (gains) and losses which resulted in an
increase in SG&A expense of $0.8 million to reflect the increase in the
deferred compensation liability to participants.
-- The effective income tax rate for the three months ended September 30,
2011 was 25.7% compared to 26.4% for the same period of the prior year.
Excluding discrete items totaling $4.3 million and $4.0 million recorded
during the three months ended September 30, 2011 and 2010, the company's
effective income tax rates were approximately 33.2% and 33.6%,
respectively.
-- Worldwide unit growth increased 0.8 percent from September 30, 2010
comprised of domestic and international unit growth of 0.4 percent and
2.5 percent, respectively.
-- Domestic system-wide revenue per available room ("RevPAR") increased
5.4% for the third quarter of 2011 compared to the same period of 2010.
-- The effective royalty rate increased 2 basis points to 4.29% for the
three months ended September 30, 2011 compared to 4.27% for the same
period of the prior year.
-- The company executed 79 new domestic hotel franchise contracts for the
three months ended September 30, 2011, compared to the 79 contracts
executed in the same period of the prior year.
-- The number of domestic hotels under construction, awaiting conversion or
approved for development declined 21% from September 30, 2010 to 430
hotels representing 35,114 rooms; the worldwide pipeline declined 18%
from September 30, 2010 to 524 hotels representing 43,829 rooms.
"We continue to work closely with our franchisees to improve their unit profitability by driving incremental business to their hotels and providing them with targeted services and support to enhance property-level operating performance," said Stephen P. Joyce, president and chief executive officer. "The fundamental strength of our operating model remains strong, as we continue to invest in programs that drive incremental business for our franchisees while returning value to our shareholders through share repurchases and dividends."
Special Items
During the three and nine months ended September 30, 2011, the company recorded employee termination benefits charges of approximately $0.4 million and $0.8 million, respectively. In addition, during the nine months ended September 30, 2011, the company reduced the carrying amount of a parcel of land held for sale resulting in a loss of $1.8 million included in other gains and losses. These amounts represented diluted EPS of $0.03 for the nine months ended September 30, 2011 but did not have an effect on the reported diluted EPS for the three months ended September 30, 2011.
During the three and nine months ended September 30, 2010, the company recorded employee termination benefits charges of approximately $0.3 million and $0.5 million, respectively. These amounts did not have an effect on the reported diluted EPS for the periods reported.
Outlook for 2011
The company's fourth quarter 2011 diluted EPS is expected to be $0.43. The company expects full-year 2011 adjusted diluted EPS to be approximately $1.89. Adjusted EBITDA for full-year 2011 are expected to be approximately $183 million. These estimates include the following assumptions:
-- The company expects net domestic unit growth to be relatively flat in
2011;
-- RevPAR is expected to increase approximately 6.5% for the fourth quarter
of 2011 and increase approximately 6% for full-year 2011;
-- The effective royalty rate is expected to increase 2 basis points for
full-year 2011;
-- All figures assume the existing share count and an effective tax rate of
34.0% and 30.5% for the fourth quarter and full-year 2011, respectively;
-- Adjusted EBITDA for the full year 2011 excludes $0.8 million of
operating expenses related to employee termination benefits. Adjusted
diluted EPS excludes the aforementioned employee termination benefits as
well as a $1.8 million loss on land held for sale which together
represent approximately $0.03 diluted EPS for full year 2011.
Use of Free Cash Flow
The company has historically used its free cash flow (cash flow from operations less capital expenditures) to return value to shareholders, primarily through share repurchases and dividends.
For the nine months ended September 30, 2011 the company paid $32.9 million of cash dividends to shareholders. The current quarterly dividend rate per common share is $0.185, subject to declaration by our board of directors.
During the three and nine months ended September 30, 2011, the company purchased approximately 0.7 million shares of its common stock under the share repurchase program at an average price of $29.79 for a total cost of $22.2 million under the share repurchase program. Subsequent to September 30, 2011 and through October 26, 2011, the company repurchased an additional 0.6 million shares at a total cost of $18.0 million at an average price of $32.00 and has authorization to purchase up to an additional 2.3 million shares under this program. We expect to continue making repurchases in the open market and through privately negotiated transactions, subject to market and other conditions. No minimum number of share repurchases has been fixed. Since Choice announced its stock repurchase program on June 25, 1998, the company has repurchased 43.9 million shares of its common stock for a total cost of $1 billion through September 30, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 76.9 million shares through September 30, 2011 under the share repurchase program at an average price of $13.51 per share.
Our board of directors previously authorized us to enter into programs which permit us to offer financing, investment and guaranty support to qualified franchisees as well as to acquire and resell real estate to incent franchise development for certain brands in top markets. Over the next several years, we expect to continue to opportunistically deploy capital pursuant to these programs to promote growth of our emerging brands. The amount and timing of the investment in these programs will be dependent on market and other conditions. Notwithstanding these programs, the company expects to continue to return value to its shareholders through a combination of share repurchases and dividends, subject to market and other conditions.
Conference Call
Choice will conduct a conference call on Thursday, October 27, 2011 at 9:30 a.m. EDT to discuss the company's third quarter 2011 results. The dial-in number to listen to the call is 1-888-396-2356, and the access code is 22573205. International callers should dial 1-617-847-8709 and enter the access code 22573205. The conference call also will be Webcast simultaneously via the company's Web site, www.choicehotels.com. Interested investors and other parties wishing to access the call via the Webcast should go to the Web site and click on the Investor Info link. The Investor Information page will feature a conference call microphone icon to access the call.
The call will be recorded and available for replay beginning at 12:30 p.m. EDT on Thursday, October 27, 2011 through Monday, November 28, 2011 by calling 1-888-286-8010 and entering access code 18258621. The international dial-in number for the replay is 1-617-801-6888, access code 18258621. In addition, the call will be archived and available on www.choicehotels.com via the Investor Info link.
About Choice Hotels
Choice Hotels International, Inc. franchises more than 6,100 hotels, representing more than 490,000 rooms, in the United States and more than 30 other countries and territories. As of September 30, 2011, 430 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 35,000 rooms, and 94 hotels, representing approximately 8,700 rooms, were under construction, awaiting conversion or approved for development in more than 20 other countries and territories. The company's Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands serve guests worldwide. In addition, via its Ascend Collection membership program, travelers in the United States, Canada and the Caribbean have upscale lodging options at historic, boutique and unique hotels.
Additional corporate information may be found on the Choice Hotels International, Inc. Web site, which may be accessed at www.choicehotels.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the federal securities law. Generally, our use of words such as "expect," "estimate," "believe," "anticipate," "will," "forecast," "plan," project," "assume" or similar words of futurity identify statements that are forward-looking and that we intend to be included within the Safe Harbor protections provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of the company's revenue, earnings and other financial and operational measures, company debt levels, payment of stock dividends, and future operations, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors.
Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions; operating risks common in the lodging and franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees; our ability to keep pace with improvements in technology utilized for reservations systems and other operating systems; fluctuations in the supply and demand for hotels rooms; and our ability to manage effectively our indebtedness. These and other risk factors are discussed in detail in the Risk Factors section of the company's Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission on March 1, 2011. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Statement Concerning Non-GAAP Financial Measurements
Adjusted diluted EPS, adjusted EBITDA, adjusted SG&A, franchising revenues and adjusted franchising margins are non-GAAP financial measurements. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (GAAP), such as diluted earnings per share, operating income, total revenues and operating margins. The company's calculation of these measurements may be different from the calculations used by other companies and therefore comparability may be limited. The company has included an exhibit accompanying this release that reconciles these measures to the comparable GAAP measurement. We discuss management's reasons for reporting these non-GAAP measures below.
Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects earnings excluding the impact of interest expense, tax expense, depreciation and amortization. Our management considers EBITDA to be an indicator of operating performance because it can be used to measure our ability to service debt, fund capital expenditures, and expand our business. EBITDA is a commonly used measure of performance in our industry. In addition, it is used by analysts, lenders, investors and others, as well as by us, to facilitate comparisons between the company and its competitors because it excludes certain items that can vary widely across different industries or among companies within the same industry.
Franchising Revenues and Margins: The company reports franchising revenues and margins which exclude marketing and reservation revenues and hotel operations. Marketing and reservation activities are excluded from revenues and operating margins since the company is contractually required by its franchise agreements to use these fees collected for marketing and reservation activities. Cumulative reservation and marketing fees not expended are recorded as a payable on the company's financial statements and are carried over to the next fiscal year and expended in accordance with the franchise agreements. Cumulative marketing and reservation expenditures in excess of fees collected for marketing and reservation activities are recorded as a receivable on the company's financial statements. In addition, the company has the contractual authority to require that the franchisees in the system at any given point repay the company for any deficits related to marketing and reservation activities. Hotel operations are excluded since they do not reflect the most accurate measure of the company's core franchising business. These non-GAAP measures are a commonly used measure of performance in our industry and facilitate comparisons between the company and its competitors.
Adjusted Diluted EPS, Adjusted EBITDA, Adjusted SG&A and Adjusted Franchising Margins: The company's management also uses adjusted diluted EPS, adjusted EBITDA, adjusted SG&A and adjusted franchising margins which exclude employee termination benefits for the three and nine months ended September 30, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the nine months ended September 30, 2011. The company utilizes these non-GAAP measures to enable investors to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of on-going operations.
Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn and Ascend Collection are proprietary trademarks and service marks of Choice Hotels International.
© 2011 Choice Hotels International, Inc. All rights reserved.
Choice Hotels International, Inc. Exhibit 1
Consolidated Statements of Income
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
Variance Variance
2011 2010 $ % 2011 2010 $ %
---- ---- --- --- ---- ---- --- ---
(In thousands,
except per share
amounts)
REVENUES:
Royalty
fees $77,355 $72,565 $4,790 7% $183,896 $171,029 $12,867 8%
Initial franchise
and relicensing
fees 3,469 1,970 1,499 76% 8,668 6,537 2,131 33%
Procurement
services 3,984 3,756 228 6% 13,706 13,612 94 1%
Marketing and
reservation 104,393 102,867 1,526 1% 258,192 242,096 16,096 7%
Hotel
operations 1,236 1,068 168 16% 3,173 3,044 129 4%
Other 1,884 1,575 309 20% 5,268 4,752 516 11%
----- ----- --- --- ----- ----- --- ---
Total
revenues 192,321 183,801 8,520 5% 472,903 441,070 31,833 7%
OPERATING
EXPENSES:
Selling, general
and
administrative 22,555 23,156 (601) (3%) 72,941 67,796 5,145 8%
Depreciation and
amortization 2,073 2,078 (5) (0%) 5,976 6,470 (494) (8%)
Marketing and
reservation 104,393 102,867 1,526 1% 258,192 242,096 16,096 7%
Hotel
operations 900 823 77 9% 2,593 2,387 206 9%
--- --- --- --- ----- ----- --- ---
Total operating
expenses 129,921 128,924 997 1% 339,702 318,749 20,953 7%
Operating
income 62,400 54,877 7,523 14% 133,201 122,321 10,880 9%
OTHER INCOME AND
EXPENSES, NET:
Interest
expense 3,228 1,864 1,364 73% 9,719 3,160 6,559 208%
Interest
income (506) (161) (345) 214% (937) (356) (581) 163%
Other (gains) and
losses 2,673 (1,510) 4,183 (277%) 3,678 (1,289) 4,967 (385%)
Equity in net
(income) loss of
affiliates 39 (342) 381 (111%) (262) (890) 628 (71%)
Total other
income and
expenses, net 5,434 (149) 5,583 (3747%) 12,198 625 11,573 1852%
----- ---- ----- ------- ------ --- ------ ----
Income before
income taxes 56,966 55,026 1,940 4% 121,003 121,696 (693) (1%)
Income
taxes 14,664 14,532 132 1% 35,393 38,398 (3,005) (8%)
------ ------ --- ------ ------ ------
Net income $42,302 $40,494 $1,808 4% $85,610 $83,298 $2,312 3%
======= ======= ====== === ======= ======= ====== ===
Basic earnings
per share $0.71 $0.68 $0.03 4% $1.43 $1.40 $0.03 2%
===== ===== ===== === ===== ===== ===== ===
Diluted earnings
per share $0.71 $0.68 $0.03 4% $1.43 $1.40 $0.03 2%
===== ===== ===== === ===== ===== ===== ===
Choice Hotels International, Inc. Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share amounts) September 30, December 31,
2011 2010
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $124,734 $91,259
Accounts receivable, net 62,009 47,638
Deferred income taxes 429 429
Other current assets 22,585 24,256
------ ------
Total current assets 209,757 163,582
Fixed assets and intangibles, net 137,438 142,528
Receivable --marketing and reservation
fees 54,040 42,507
Investments, employee benefit plans, at
fair value 22,017 23,365
Other assets 44,669 39,740
------ ------
Total assets $467,921 $411,722
-------- --------
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses $81,614 $88,986
Deferred revenue 76,643 67,322
Deferred compensation & retirement plan
obligations 2,720 2,552
Current portion of long-term debt 691 420
Revolving credit facility - 200
Income taxes payable 20,129 5,778
------ -----
Total current liabilities 181,797 165,258
Long-term debt 252,320 251,554
Deferred compensation & retirement plan
obligations 33,818 35,707
Other liabilities 14,427 17,274
------ ------
Total liabilities 482,362 469,793
Common stock, $0.01 par value 592 596
Additional paid-in-capital 98,681 92,774
Accumulated other comprehensive loss (6,720) (7,192)
Treasury stock, at cost (887,815) (872,306)
Retained earnings 780,821 728,057
------- -------
Total shareholders' deficit (14,441) (58,071)
Total liabilities and
shareholders' deficit $467,921 $411,722
-------- --------
Choice Hotels International, Inc. Exhibit 3
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands) Nine Months Ended September 30,
-------------------------------
2011 2010
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $85,610 $83,298
Adjustments to reconcile net income
to net cash provided
by operating activities:
Depreciation and amortization 5,976 6,470
Provision for bad debts 845 2,421
Non-cash stock compensation and
other charges 10,262 6,969
Non-cash interest and other (income)
loss 3,079 (987)
Dividends received from equity method
investments 316 618
Equity in net income of affiliates (262) (890)
Changes in assets and liabilities,
net of acquisitions:
Receivables (15,494) (14,511)
Receivable -marketing and
reservation fees, net (1,474) (2,594)
Accounts payable 4,468 6,274
Accrued expenses (10,584) (1,210)
Income taxes payable/receivable 14,354 11,940
Deferred income taxes 2,839 (2,704)
Deferred revenue 9,375 19,443
Other assets (556) (11,755)
Other liabilities (2,861) 5,457
------ -----
NET CASH PROVIDED BY OPERATING
ACTIVITIES 105,893 108,239
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment (8,129) (17,673)
Equity method investments (3,600) -
Acquisitions, net of cash acquired - (466)
Purchases of investments, employee
benefit plans (1,051) (1,396)
Proceeds from sales of investments,
employee benefit plans 566 1,018
Issuance of notes receivable (4,320) (8,901)
Collections of notes receivable 15 5,055
Other items, net (312) (296)
---- ----
NET CASH USED IN INVESTING ACTIVITIES (16,831) (22,659)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (repayments) pursuant
to revolving credit facilities (200) (271,100)
Repayments of long-term debt (74) (20)
Proceeds from the issuance of long-
term debt 75 247,733
Settlement of forward starting
interest rate swap agreement - (8,663)
Purchase of treasury stock (24,796) (11,171)
Dividends paid (32,923) (32,884)
Excess tax benefits from stock-based
compensation 1,108 331
Debt issuance costs (2,356) (804)
Proceeds from exercise of stock
options 3,726 1,321
----- -----
NET CASH USED IN FINANCING ACTIVITIES (55,440) (75,257)
------- -------
Net change in cash and cash
equivalents 33,622 10,323
Effect of foreign exchange rate
changes on cash and cash equivalents (147) 1,355
Cash and cash equivalents at
beginning of period 91,259 67,870
------ ------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $124,734 $79,548
======== =======
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
For the Nine Months Ended September 30, 2011* For the Nine Months Ended September 30, 2010* Change
--------------------------------------------- --------------------------------------------- ------
Average
Average Daily Average Daily Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $79.24 57.0% $45.18 $77.16 55.4% $42.72 2.7% 160 bps 5.8%
Comfort
Suites 83.92 58.4% 49.05 82.92 55.1% 45.72 1.2% 330 bps 7.3%
Sleep 69.92 53.5% 37.39 68.94 51.8% 35.69 1.4% 170 bps 4.8%
Quality 67.95 49.9% 33.90 67.30 48.0% 32.31 1.0% 190 bps 4.9%
Clarion 73.76 46.7% 34.42 75.54 43.3% 32.73 (2.4%) 340 bps 5.2%
Econo Lodge 54.75 47.2% 25.83 54.26 45.7% 24.81 0.9% 150 bps 4.1%
Rodeway 52.13 48.6% 25.33 51.42 46.0% 23.64 1.4% 260 bps 7.1%
MainStay 66.17 67.1% 44.38 66.03 63.8% 42.09 0.2% 330 bps 5.4%
Suburban 40.24 67.7% 27.25 39.24 64.2% 25.20 2.5% 350 bps 8.1%
Ascend
Collection 109.82 59.9% 65.81 106.48 56.6% 60.25 3.1% 330 bps 9.2%
------ ---- ----- ------ ---- ----- --- --- --- ---
Total $71.78 53.3% $38.24 $70.64 51.2% $36.18 1.6% 210 bps 5.7%
====== ==== ====== ====== ==== ====== === === === ===
* Operating statistics represent hotel operations from December through August
For the Three Months Ended September 30, 2011* For the Three Months Ended September 30, 2010* Change
---------------------------------------------- ---------------------------------------------- ------
Average
Average Daily Average Daily Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $85.05 68.6% $58.31 $82.46 66.7% $54.99 3.1% 190 bps 6.0%
Comfort
Suites 87.23 67.8% 59.13 85.78 64.2% 55.03 1.7% 360 bps 7.5%
Sleep 73.15 62.9% 46.02 72.03 60.4% 43.52 1.6% 250 bps 5.7%
Quality 72.90 59.8% 43.60 71.76 58.3% 41.84 1.6% 150 bps 4.2%
Clarion 78.13 55.1% 43.01 80.18 51.5% 41.27 (2.6%) 360 bps 4.2%
Econo Lodge 59.32 56.4% 33.45 58.62 55.4% 32.47 1.2% 100 bps 3.0%
Rodeway 58.23 58.8% 34.22 57.40 56.0% 32.15 1.4% 280 bps 6.4%
MainStay 69.45 77.3% 53.68 68.96 72.5% 49.98 0.7% 480 bps 7.4%
Suburban 41.00 72.8% 29.85 40.61 67.8% 27.52 1.0% 500 bps 8.5%
Ascend
Collection 113.61 67.3% 76.50 109.71 67.9% 74.45 3.6% (60) bps 2.8%
------ ---- ----- ------ ---- ----- --- --- --- ---
Total $76.53 63.2% $48.39 $75.07 61.2% $45.92 1.9% 200 bps 5.4%
====== ==== ====== ====== ==== ====== === === === ===
* Operating statistics represent hotel operations from June through August
For the Quarter Ended For the Nine Months Ended
--------------------- -------------------------
9/30/2011 9/30/2010 9/30/2011 9/30/2010
System-
wide
effective
royalty
rate 4.29% 4.27% 4.32% 4.29%
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
September 30, 2011 September 30, 2010 Variance
------------------ ------------------ --------
Hotels Rooms Hotels Rooms Hotels Rooms % %
------ ----- ------ ----- ------ ----- --- ---
Comfort Inn 1,413 110,652 1,450 113,952 (37) (3,300) (2.6%) (2.9%)
Comfort Suites 616 47,667 624 48,411 (8) (744) (1.3%) (1.5%)
Sleep 392 28,431 394 28,714 (2) (283) (0.5%) (1.0%)
Quality 1,037 90,368 990 88,831 47 1,537 4.7% 1.7%
Clarion 189 27,448 176 25,208 13 2,240 7.4% 8.9%
Econo Lodge 782 48,381 774 48,022 8 359 1.0% 0.7%
Rodeway 378 20,820 387 21,522 (9) (702) (2.3%) (3.3%)
MainStay 39 3,027 37 2,868 2 159 5.4% 5.5%
Suburban 58 6,934 63 7,608 (5) (674) (7.9%) (8.9%)
Ascend Collection 46 4,084 34 2,821 12 1,263 35.3% 44.8%
Cambria Suites 19 2,215 22 2,558 (3) (343) (13.6%) (13.4%)
--- ----- --- ----- --- ---- ------- -------
Domestic
Franchises 4,969 390,027 4,951 390,515 18 (488) 0.4% (0.1%)
International
Franchises 1,169 103,473 1,140 101,637 29 1,836 2.5% 1.8%
----- ------- ----- ------- --- ----- --- ---
Total Franchises 6,138 493,500 6,091 492,152 47 1,348 0.8% 0.3%
===== ======= ===== ======= === ===== === ===
Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
For the Nine Months Ended For the Nine Months Ended % Change
------------------------- ------------------------- --------
September 30, 2011 September 30, 2010
------------------ ------------------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 6 28 34 4 22 26 50% 27% 31%
Comfort Suites 7 4 11 13 1 14 (46%) 300% (21%)
Sleep 6 1 7 3 - 3 100% NM 133%
Quality - 49 49 1 54 55 (100%) (9%) (11%)
Clarion - 12 12 - 17 17 NM (29%) (29%)
Econo Lodge - 36 36 - 38 38 NM (5%) (5%)
Rodeway - 32 32 1 26 27 (100%) 23% 19%
MainStay 1 3 4 4 - 4 (75%) NM 0%
Suburban 2 2 4 1 - 1 100% NM 300%
Ascend Collection 2 9 11 1 5 6 100% 80% 83%
Cambria Suites 4 - 4 5 - 5 (20%) NM (20%)
--- --- --- --- --- --- ----- --- -----
Total Domestic
System 28 176 204 33 163 196 (15%) 8% 4%
=== === === === === === ===== === ===
For the Three Months Ended For the Three Months Ended % Change
-------------------------- -------------------------- --------
September 30, 2011 September 30, 2010
------------------ ------------------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 1 10 11 1 9 10 0% 11% 10%
Comfort Suites 6 - 6 5 - 5 20% NM 20%
Sleep 3 - 3 1 - 1 200% NM 200%
Quality - 14 14 - 23 23 NM (39%) (39%)
Clarion - 4 4 - 11 11 NM (64%) (64%)
Econo Lodge - 18 18 - 16 16 NM 13% 13%
Rodeway - 14 14 - 7 7 NM 100% 100%
MainStay - - - 1 - 1 (100%) NM (100%)
Suburban - 1 1 - - - NM NM NM
Ascend Collection 2 4 6 1 2 3 100% 100% 100%
Cambria Suites 2 - 2 2 - 2 0% NM 0%
--- --- --- --- --- --- --- --- ---
Total Domestic
System 14 65 79 11 68 79 27% (4%) 0%
=== === === === === === === ==== ===
`
Exhibit 7
CHOICE HOTELS INTERNATIONAL, INC.
DOMESTIC HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT
(UNAUDITED)
A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.
Variance
--------
September 30, 2011 September 30, 2010
New
Units Units Conversion Construction Total
----- ----- ---------- ------------- -----
New New
Conversion Construction Total Conversion Construction Total Units % Units % Units %
---------- ------------- ----- ---------- ------------- ----- ----- --- ----- --- ----- ---
Comfort Inn 23 47 70 35 64 99 (12) (34%) (17) (27%) (29) (29%)
Comfort Suites 1 105 106 1 126 127 - 0% (21) (17%) (21) (17%)
Sleep Inn - 62 62 1 81 82 (1) (100%) (19) (23%) (20) (24%)
Quality 29 5 34 38 9 47 (9) (24%) (4) (44%) (13) (28%)
Clarion 10 1 11 20 4 24 (10) (50%) (3) (75%) (13) (54%)
Econo Lodge 31 1 32 37 2 39 (6) (16%) (1) (50%) (7) (18%)
Rodeway 18 1 19 16 2 18 2 13% (1) (50%) 1 6%
MainStay 3 28 31 - 40 40 3 NM (12) (30%) (9) (23%)
Suburban 1 20 21 - 26 26 1 NM (6) (23%) (5) (19%)
Ascend
Collection 7 5 12 3 5 8 4 133% - 0% 4 50%
Cambria Suites - 32 32 - 35 35 - NM (3) (9%) (3) (9%)
--- --- --- --- --- --- --- --- --- ---- --- ----
123 307 430 151 394 545 (28) (19%) (87) (22%) (115) (21%)
=== === === === === === === ===== === ===== ==== =====
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 8
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
CALCULATION OF FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS
(dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2011 2010 2011 2010
---- ---- ---- ----
Franchising Revenues:
Total Revenues $192,321 $183,801 $472,903 $441,070
Adjustments:
Marketing and reservation
revenues (104,393) (102,867) (258,192) (242,096)
Hotel operations (1,236) (1,068) (3,173) (3,044)
Franchising Revenues $86,692 $79,866 $211,538 $195,930
------- ------- -------- --------
Franchising Margins:
Operating Margin:
Total Revenues $192,321 $183,801 $472,903 $441,070
Operating Income $62,400 $54,877 $133,201 $122,321
Operating Margin 32.4% 29.9% 28.2% 27.7%
---- ---- ---- ----
Adjusted Franchising Margin:
Franchising Revenues $86,692 $79,866 $211,538 $195,930
Operating Income $62,400 $54,877 $133,201 $122,321
Employee termination benefits 408 263 825 497
Hotel operations (336) (245) (580) (657)
$62,472 $54,895 $133,446 $122,161
------- ------- -------- --------
Adjusted Franchising Margins 72.1% 68.7% 63.1% 62.3%
---- ---- ---- ----
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS
(dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2011 2010 2011 2010
---- ---- ---- ----
Selling, general and
administrative costs $22,555 $23,156 $72,941 $67,796
Employee termination benefits (408) (263) (825) (497)
Adjusted Selling, General and
Administrative Costs $22,147 $22,893 $72,116 $67,299
======= ======= ======= =======
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
(In thousands, except per share
amounts) Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2011 2010 2011 2010
---- ---- ---- ----
Net Income $42,302 $40,494 $85,610 $83,298
Adjustments:
Employee termination benefits 257 165 519 311
Loss on land held for sale - - 1,111 -
--- --- ----- ---
Adjusted Net Income $42,559 $40,659 $87,240 $83,609
------- ------- ------- -------
Weighted average shares
outstanding-diluted 59,807 59,658 59,805 59,646
Diluted Earnings Per Share $0.71 $0.68 $1.43 $1.40
Adjustments:
Employee termination benefits - - 0.01 -
Loss on land held for sale - - 0.02 -
--- --- ---- ---
Adjusted Diluted Earnings Per
Share (EPS) $0.71 $0.68 $1.46 $1.40
----- ----- ----- -----
Adjusted EBITDA Reconciliation
(in millions)
Nine Months Ended Nine Months Ended Full-Year
September 30, September 30, 2011
Q3 2011 Actuals Q3 2010 Actuals 2011 Actuals 2010 Actuals Outlook
--------------- --------------- ------------------ ------------------ ----------
Operating Income (per GAAP) $62.4 $54.9 $133.2 $122.3 $174.0
Employee termination benefits 0.4 0.3 0.8 0.5 0.8
Depreciation and amortization 2.1 2.1 6.0 6.5 8.2
---
Adjusted Earnings before
interest, taxes, depreciation &
amortization (non-GAAP) $64.9 $57.3 $140.0 $129.3 $183.0
===== ===== ====== ====== ======
SOURCE Choice Hotels International, Inc.
SOURCE: Choice Hotels International, Inc.
PR Newswire
SILVER SPRING, Md., Oct. 26, 2011
SILVER SPRING, Md. Oct. 26, 2011 /PRNewswire/ -- Choice Hotels International, Inc., (NYSE:CHH) today reported the following highlights for third quarter 2011:
"We continue to work closely with our franchisees to improve their unit profitability by driving incremental business to their hotels and providing them with targeted services and support to enhance property-level operating performance," said Stephen P. Joyce, president and chief executive officer. "The fundamental strength of our operating model remains strong, as we continue to invest in programs that drive incremental business for our franchisees while returning value to our shareholders through share repurchases and dividends."
Special Items
During the three and nine months ended September 30, 2011, the company recorded employee termination benefits charges of approximately $0.4 million and $0.8 million, respectively. In addition, during the nine months ended September 30, 2011, the company reduced the carrying amount of a parcel of land held for sale resulting in a loss of $1.8 million included in other gains and losses. These amounts represented diluted EPS of $0.03 for the nine months ended September 30, 2011 but did not have an effect on the reported diluted EPS for the three months ended September 30, 2011.
During the three and nine months ended September 30, 2010, the company recorded employee termination benefits charges of approximately $0.3 million and $0.5 million, respectively. These amounts did not have an effect on the reported diluted EPS for the periods reported.
Outlook for 2011
The company's fourth quarter 2011 diluted EPS is expected to be $0.43. The company expects full-year 2011 adjusted diluted EPS to be approximately $1.89. Adjusted EBITDA for full-year 2011 are expected to be approximately $183 million. These estimates include the following assumptions:
Use of Free Cash Flow
The company has historically used its free cash flow (cash flow from operations less capital expenditures) to return value to shareholders, primarily through share repurchases and dividends.
For the nine months ended September 30, 2011 the company paid $32.9 million of cash dividends to shareholders. The current quarterly dividend rate per common share is $0.185, subject to declaration by our board of directors.
During the three and nine months ended September 30, 2011, the company purchased approximately 0.7 million shares of its common stock under the share repurchase program at an average price of $29.79 for a total cost of $22.2 million under the share repurchase program. Subsequent to September 30, 2011 and through October 26, 2011, the company repurchased an additional 0.6 million shares at a total cost of $18.0 million at an average price of $32.00 and has authorization to purchase up to an additional 2.3 million shares under this program. We expect to continue making repurchases in the open market and through privately negotiated transactions, subject to market and other conditions. No minimum number of share repurchases has been fixed. Since Choice announced its stock repurchase program on June 25, 1998, the company has repurchased 43.9 million shares of its common stock for a total cost of $1 billion through September 30, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 76.9 million shares through September 30, 2011 under the share repurchase program at an average price of $13.51 per share.
Our board of directors previously authorized us to enter into programs which permit us to offer financing, investment and guaranty support to qualified franchisees as well as to acquire and resell real estate to incent franchise development for certain brands in top markets. Over the next several years, we expect to continue to opportunistically deploy capital pursuant to these programs to promote growth of our emerging brands. The amount and timing of the investment in these programs will be dependent on market and other conditions. Notwithstanding these programs, the company expects to continue to return value to its shareholders through a combination of share repurchases and dividends, subject to market and other conditions.
Conference Call
Choice will conduct a conference call on Thursday, October 27, 2011 at 9:30 a.m. EDT to discuss the company's third quarter 2011 results. The dial-in number to listen to the call is 1-888-396-2356, and the access code is 22573205. International callers should dial 1-617-847-8709 and enter the access code 22573205. The conference call also will be Webcast simultaneously via the company's Web site, www.choicehotels.com. Interested investors and other parties wishing to access the call via the Webcast should go to the Web site and click on the Investor Info link. The Investor Information page will feature a conference call microphone icon to access the call.
The call will be recorded and available for replay beginning at 12:30 p.m. EDT on Thursday, October 27, 2011 through Monday, November 28, 2011 by calling 1-888-286-8010 and entering access code 18258621. The international dial-in number for the replay is 1-617-801-6888, access code 18258621. In addition, the call will be archived and available on www.choicehotels.com via the Investor Info link.
About Choice Hotels
Choice Hotels International, Inc. franchises more than 6,100 hotels, representing more than 490,000 rooms, in the United States and more than 30 other countries and territories. As of September 30, 2011, 430 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 35,000 rooms, and 94 hotels, representing approximately 8,700 rooms, were under construction, awaiting conversion or approved for development in more than 20 other countries and territories. The company's Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands serve guests worldwide. In addition, via its Ascend Collection membership program, travelers in the United States, Canada and the Caribbean have upscale lodging options at historic, boutique and unique hotels.
Additional corporate information may be found on the Choice Hotels International, Inc. Web site, which may be accessed at www.choicehotels.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the federal securities law. Generally, our use of words such as "expect," "estimate," "believe," "anticipate," "will," "forecast," "plan," project," "assume" or similar words of futurity identify statements that are forward-looking and that we intend to be included within the Safe Harbor protections provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections of the company's revenue, earnings and other financial and operational measures, company debt levels, payment of stock dividends, and future operations, among other matters. We caution you not to place undue reliance on any such forward-looking statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors.
Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions; operating risks common in the lodging and franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees; our ability to keep pace with improvements in technology utilized for reservations systems and other operating systems; fluctuations in the supply and demand for hotels rooms; and our ability to manage effectively our indebtedness. These and other risk factors are discussed in detail in the Risk Factors section of the company's Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission on March 1, 2011. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Statement Concerning Non-GAAP Financial Measurements
Adjusted diluted EPS, adjusted EBITDA, adjusted SG&A, franchising revenues and adjusted franchising margins are non-GAAP financial measurements. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (GAAP), such as diluted earnings per share, operating income, total revenues and operating margins. The company's calculation of these measurements may be different from the calculations used by other companies and therefore comparability may be limited. The company has included an exhibit accompanying this release that reconciles these measures to the comparable GAAP measurement. We discuss management's reasons for reporting these non-GAAP measures below.
Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects earnings excluding the impact of interest expense, tax expense, depreciation and amortization. Our management considers EBITDA to be an indicator of operating performance because it can be used to measure our ability to service debt, fund capital expenditures, and expand our business. EBITDA is a commonly used measure of performance in our industry. In addition, it is used by analysts, lenders, investors and others, as well as by us, to facilitate comparisons between the company and its competitors because it excludes certain items that can vary widely across different industries or among companies within the same industry.
Franchising Revenues and Margins: The company reports franchising revenues and margins which exclude marketing and reservation revenues and hotel operations. Marketing and reservation activities are excluded from revenues and operating margins since the company is contractually required by its franchise agreements to use these fees collected for marketing and reservation activities. Cumulative reservation and marketing fees not expended are recorded as a payable on the company's financial statements and are carried over to the next fiscal year and expended in accordance with the franchise agreements. Cumulative marketing and reservation expenditures in excess of fees collected for marketing and reservation activities are recorded as a receivable on the company's financial statements. In addition, the company has the contractual authority to require that the franchisees in the system at any given point repay the company for any deficits related to marketing and reservation activities. Hotel operations are excluded since they do not reflect the most accurate measure of the company's core franchising business. These non-GAAP measures are a commonly used measure of performance in our industry and facilitate comparisons between the company and its competitors.
Adjusted Diluted EPS, Adjusted EBITDA, Adjusted SG&A and Adjusted Franchising Margins: The company's management also uses adjusted diluted EPS, adjusted EBITDA, adjusted SG&A and adjusted franchising margins which exclude employee termination benefits for the three and nine months ended September 30, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the nine months ended September 30, 2011. The company utilizes these non-GAAP measures to enable investors to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of on-going operations.
Choice Hotels, Choice Hotels International, Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn and Ascend Collection are proprietary trademarks and service marks of Choice Hotels International.
© 2011 Choice Hotels International, Inc. All rights reserved.
|
Choice Hotels International, Inc. |
Exhibit 1 |
||||||||||||||||||||||||||||||||||
|
Consolidated Statements of Income |
|||||||||||||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||||||
|
Variance |
Variance |
||||||||||||||||||||||||||||||||||
|
2011 |
2010 |
$ |
% |
2011 |
2010 |
$ |
% |
||||||||||||||||||||||||||||
|
(In thousands, except per share amounts) |
|||||||||||||||||||||||||||||||||||
|
REVENUES: |
|||||||||||||||||||||||||||||||||||
|
Royalty fees |
$ 77,355 |
$ 72,565 |
$ 4,790 |
7% |
$ 183,896 |
$ 171,029 |
$ 12,867 |
8% |
|||||||||||||||||||||||||||
|
Initial franchise and relicensing fees |
3,469 |
1,970 |
1,499 |
76% |
8,668 |
6,537 |
2,131 |
33% |
|||||||||||||||||||||||||||
|
Procurement services |
3,984 |
3,756 |
228 |
6% |
13,706 |
13,612 |
94 |
1% |
|||||||||||||||||||||||||||
|
Marketing and reservation |
104,393 |
102,867 |
1,526 |
1% |
258,192 |
242,096 |
16,096 |
7% |
|||||||||||||||||||||||||||
|
Hotel operations |
1,236 |
1,068 |
168 |
16% |
3,173 |
3,044 |
129 |
4% |
|||||||||||||||||||||||||||
|
Other |
1,884 |
1,575 |
309 |
20% |
5,268 |
4,752 |
516 |
11% |
|||||||||||||||||||||||||||
|
Total revenues |
192,321 |
183,801 |
8,520 |
5% |
472,903 |
441,070 |
31,833 |
7% |
|||||||||||||||||||||||||||
|
OPERATING EXPENSES: |
|||||||||||||||||||||||||||||||||||
|
Selling, general and administrative |
22,555 |
23,156 |
(601) |
(3%) |
72,941 |
67,796 |
5,145 |
8% |
|||||||||||||||||||||||||||
|
Depreciation and amortization |
2,073 |
2,078 |
(5) |
(0%) |
5,976 |
6,470 |
(494) |
(8%) |
|||||||||||||||||||||||||||
|
Marketing and reservation |
104,393 |
102,867 |
1,526 |
1% |
258,192 |
242,096 |
16,096 |
7% |
|||||||||||||||||||||||||||
|
Hotel operations |
900 |
823 |
77 |
9% |
2,593 |
2,387 |
206 |
9% |
|||||||||||||||||||||||||||
|
Total operating expenses |
129,921 |
128,924 |
997 |
1% |
339,702 |
318,749 |
20,953 |
7% |
|||||||||||||||||||||||||||
|
Operating income |
62,400 |
54,877 |
7,523 |
14% |
133,201 |
122,321 |
10,880 |
9% |
|||||||||||||||||||||||||||
|
OTHER INCOME AND EXPENSES, NET: |
|||||||||||||||||||||||||||||||||||
|
Interest expense |
3,228 |
1,864 |
1,364 |
73% |
9,719 |
3,160 |
6,559 |
208% |
|||||||||||||||||||||||||||
|
Interest income |
(506) |
(161) |
(345) |
214% |
(937) |
(356) |
(581) |
163% |
|||||||||||||||||||||||||||
|
Other (gains) and losses |
2,673 |
(1,510) |
4,183 |
(277%) |
3,678 |
(1,289) |
4,967 |
(385%) |
|||||||||||||||||||||||||||
|
Equity in net (income) loss of affiliates |
39 |
(342) |
381 |
(111%) |
(262) |
(890) |
628 |
(71%) |
|||||||||||||||||||||||||||
|
Total other income and expenses, net |
5,434 |
(149) |
5,583 |
(3747%) |
12,198 |
625 |
11,573 |
1852% |
|||||||||||||||||||||||||||
|
Income before income taxes |
56,966 |
55,026 |
1,940 |
4% |
121,003 |
121,696 |
(693) |
(1%) |
|||||||||||||||||||||||||||
|
Income taxes |
14,664 |
14,532 |
132 |
1% |
35,393 |
38,398 |
(3,005) |
(8%) |
|||||||||||||||||||||||||||
|
Net income |
$ 42,302 |
$ 40,494 |
$ 1,808 |
4% |
$ 85,610 |
$ 83,298 |
$ 2,312 |
3% |
|||||||||||||||||||||||||||
|
Basic earnings per share |
$ 0.71 |
$ 0.68 |
$ 0.03 |
4% |
$ 1.43 |
$ 1.40 |
$ 0.03 |
2% |
|||||||||||||||||||||||||||
|
Diluted earnings per share |
$ 0.71 |
$ 0.68 |
$ 0.03 |
4% |
$ 1.43 |
$ 1.40 |
$ 0.03 |
2% |
|||||||||||||||||||||||||||
|
Choice Hotels International, Inc. |
Exhibit 2 |
||||||
|
Consolidated Balance Sheets |
|||||||
|
(In thousands, except per share amounts) |
September 30, |
December 31, |
|||||
|
2011 |
2010 |
||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Cash and cash equivalents |
$ 124,734 |
$ 91,259 |
|||||
|
Accounts receivable, net |
62,009 |
47,638 |
|||||
|
Deferred income taxes |
429 |
429 |
|||||
|
Other current assets |
22,585 |
24,256 |
|||||
|
Total current assets |
209,757 |
163,582 |
|||||
|
Fixed assets and intangibles, net |
137,438 |
142,528 |
|||||
|
Receivable -- marketing and reservation fees |
54,040 |
42,507 |
|||||
|
Investments, employee benefit plans, at fair value |
22,017 |
23,365 |
|||||
|
Other assets |
44,669 |
39,740 |
|||||
|
Total assets |
$ 467,921 |
$ 411,722 |
|||||
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|||||||
|
Accounts payable and accrued expenses |
$ 81,614 |
$ 88,986 |
|||||
|
Deferred revenue |
76,643 |
67,322 |
|||||
|
Deferred compensation & retirement plan obligations |
2,720 |
2,552 |
|||||
|
Current portion of long-term debt |
691 |
420 |
|||||
|
Revolving credit facility |
- |
200 |
|||||
|
Income taxes payable |
20,129 |
5,778 |
|||||
|
Total current liabilities |
181,797 |
165,258 |
|||||
|
Long-term debt |
252,320 |
251,554 |
|||||
|
Deferred compensation & retirement plan obligations |
33,818 |
35,707 |
|||||
|
Other liabilities |
14,427 |
17,274 |
|||||
|
Total liabilities |
482,362 |
469,793 |
|||||
|
Common stock, $0.01 par value |
592 |
596 |
|||||
|
Additional paid-in-capital |
98,681 |
92,774 |
|||||
|
Accumulated other comprehensive loss |
(6,720) |
(7,192) |
|||||
|
Treasury stock, at cost |
(887,815) |
(872,306) |
|||||
|
Retained earnings |
780,821 |
728,057 |
|||||
|
Total shareholders' deficit |
(14,441) |
(58,071) |
|||||
|
Total liabilities and shareholders' deficit |
$ 467,921 |
$ 411,722 |
|||||
|
Choice Hotels International, Inc. |
Exhibit 3 |
|||
|
Consolidated Statements of Cash Flows |
||||
|
(Unaudited) |
||||
|
(In thousands) |
Nine Months Ended September 30, |
|||
|
2011 |
2010 |
|||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
|
Net income |
$ 85,610 |
$ 83,298 |
||
|
Adjustments to reconcile net income to net cash provided |
||||
|
by operating activities: |
||||
|
Depreciation and amortization |
5,976 |
6,470 |
||
|
Provision for bad debts |
845 |
2,421 |
||
|
Non-cash stock compensation and other charges |
10,262 |
6,969 |
||
|
Non-cash interest and other (income) loss |
3,079 |
(987) |
||
|
Dividends received from equity method investments |
316 |
618 |
||
|
Equity in net income of affiliates |
(262) |
(890) |
||
|
Changes in assets and liabilities, net of acquisitions: |
||||
|
Receivables |
(15,494) |
(14,511) |
||
|
Receivable - marketing and reservation fees, net |
(1,474) |
(2,594) |
||
|
Accounts payable |
4,468 |
6,274 |
||
|
Accrued expenses |
(10,584) |
(1,210) |
||
|
Income taxes payable/receivable |
14,354 |
11,940 |
||
|
Deferred income taxes |
2,839 |
(2,704) |
||
|
Deferred revenue |
9,375 |
19,443 |
||
|
Other assets |
(556) |
(11,755) |
||
|
Other liabilities |
(2,861) |
5,457 |
||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
105,893 |
108,239 |
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||
|
Investment in property and equipment |
(8,129) |
(17,673) |
||
|
Equity method investments |
(3,600) |
- |
||
|
Acquisitions, net of cash acquired |
- |
(466) |
||
|
Purchases of investments, employee benefit plans |
(1,051) |
(1,396) |
||
|
Proceeds from sales of investments, employee benefit plans |
566 |
1,018 |
||
|
Issuance of notes receivable |
(4,320) |
(8,901) |
||
|
Collections of notes receivable |
15 |
5,055 |
||
|
Other items, net |
(312) |
(296) |
||
|
NET CASH USED IN INVESTING ACTIVITIES |
(16,831) |
(22,659) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||
|
Net borrowings (repayments) pursuant to revolving credit facilities |
(200) |
(271,100) |
||
|
Repayments of long-term debt |
(74) |
(20) |
||
|
Proceeds from the issuance of long-term debt |
75 |
247,733 |
||
|
Settlement of forward starting interest rate swap agreement |
- |
(8,663) |
||
|
Purchase of treasury stock |
(24,796) |
(11,171) |
||
|
Dividends paid |
(32,923) |
(32,884) |
||
|
Excess tax benefits from stock-based compensation |
1,108 |
331 |
||
|
Debt issuance costs |
(2,356) |
(804) |
||
|
Proceeds from exercise of stock options |
3,726 |
1,321 |
||
|
NET CASH USED IN FINANCING ACTIVITIES |
(55,440) |
(75,257) |
||
|
Net change in cash and cash equivalents |
33,622 |
10,323 |
||
|
Effect of foreign exchange rate changes on cash and cash equivalents |
(147) |
1,355 |
||
|
Cash and cash equivalents at beginning of period |
91,259 |
67,870 |
||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 124,734 |
$ 79,548 |
||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 4 |
|||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION |
||||||||||||||||||||||
|
DOMESTIC HOTEL SYSTEM |
||||||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||||||
|
For the Nine Months Ended September 30, 2011* |
For the Nine Months Ended September 30, 2010* |
Change |
||||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
||||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
||||||||||||||
|
Comfort Inn |
$ 79.24 |
57.0% |
$ 45.18 |
$ 77.16 |
55.4% |
$ 42.72 |
2.7% |
160 |
bps |
5.8% |
||||||||||||
|
Comfort Suites |
83.92 |
58.4% |
49.05 |
82.92 |
55.1% |
45.72 |
1.2% |
330 |
bps |
7.3% |
||||||||||||
|
Sleep |
69.92 |
53.5% |
37.39 |
68.94 |
51.8% |
35.69 |
1.4% |
170 |
bps |
4.8% |
||||||||||||
|
Quality |
67.95 |
49.9% |
33.90 |
67.30 |
48.0% |
32.31 |
1.0% |
190 |
bps |
4.9% |
||||||||||||
|
Clarion |
73.76 |
46.7% |
34.42 |
75.54 |
43.3% |
32.73 |
(2.4%) |
340 |
bps |
5.2% |
||||||||||||
|
Econo Lodge |
54.75 |
47.2% |
25.83 |
54.26 |
45.7% |
24.81 |
0.9% |
150 |
bps |
4.1% |
||||||||||||
|
Rodeway |
52.13 |
48.6% |
25.33 |
51.42 |
46.0% |
23.64 |
1.4% |
260 |
bps |
7.1% |
||||||||||||
|
MainStay |
66.17 |
67.1% |
44.38 |
66.03 |
63.8% |
42.09 |
0.2% |
330 |
bps |
5.4% |
||||||||||||
|
Suburban |
40.24 |
67.7% |
27.25 |
39.24 |
64.2% |
25.20 |
2.5% |
350 |
bps |
8.1% |
||||||||||||
|
Ascend Collection |
109.82 |
59.9% |
65.81 |
106.48 |
56.6% |
60.25 |
3.1% |
330 |
bps |
9.2% |
||||||||||||
|
Total |
$ 71.78 |
53.3% |
$ 38.24 |
$ 70.64 |
51.2% |
$ 36.18 |
1.6% |
210 |
bps |
5.7% |
||||||||||||
|
* Operating statistics represent hotel operations from December through August |
||||||||||||||||||||||
|
For the Three Months Ended September 30, 2011* |
For the Three Months Ended September 30, 2010* |
Change |
||||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
||||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
||||||||||||||
|
Comfort Inn |
$ 85.05 |
68.6% |
$ 58.31 |
$ 82.46 |
66.7% |
$ 54.99 |
3.1% |
190 |
bps |
6.0% |
||||||||||||
|
Comfort Suites |
87.23 |
67.8% |
59.13 |
85.78 |
64.2% |
55.03 |
1.7% |
360 |
bps |
7.5% |
||||||||||||
|
Sleep |
73.15 |
62.9% |
46.02 |
72.03 |
60.4% |
43.52 |
1.6% |
250 |
bps |
5.7% |
||||||||||||
|
Quality |
72.90 |
59.8% |
43.60 |
71.76 |
58.3% |
41.84 |
1.6% |
150 |
bps |
4.2% |
||||||||||||
|
Clarion |
78.13 |
55.1% |
43.01 |
80.18 |
51.5% |
41.27 |
(2.6%) |
360 |
bps |
4.2% |
||||||||||||
|
Econo Lodge |
59.32 |
56.4% |
33.45 |
58.62 |
55.4% |
32.47 |
1.2% |
100 |
bps |
3.0% |
||||||||||||
|
Rodeway |
58.23 |
58.8% |
34.22 |
57.40 |
56.0% |
32.15 |
1.4% |
280 |
bps |
6.4% |
||||||||||||
|
MainStay |
69.45 |
77.3% |
53.68 |
68.96 |
72.5% |
49.98 |
0.7% |
480 |
bps |
7.4% |
||||||||||||
|
Suburban |
41.00 |
72.8% |
29.85 |
40.61 |
67.8% |
27.52 |
1.0% |
500 |
bps |
8.5% |
||||||||||||
|
Ascend Collection |
113.61 |
67.3% |
76.50 |
109.71 |
67.9% |
74.45 |
3.6% |
(60) |
bps |
2.8% |
||||||||||||
|
Total |
$ 76.53 |
63.2% |
$ 48.39 |
$ 75.07 |
61.2% |
$ 45.92 |
1.9% |
200 |
bps |
5.4% |
||||||||||||
|
* Operating statistics represent hotel operations from June through August |
||||||||||||||||||||||
|
For the Quarter Ended |
For the Nine Months Ended |
|||||||||||||||||||||
|
9/30/2011 |
9/30/2010 |
9/30/2011 |
9/30/2010 |
|||||||||||||||||||
|
System-wide effective royalty rate |
4.29% |
4.27% |
4.32% |
4.29% |
||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 5 |
|||||||||||||||||
|
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA |
||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||
|
September 30, 2011 |
September 30, 2010 |
Variance |
||||||||||||||||
|
Hotels |
Rooms |
Hotels |
Rooms |
Hotels |
Rooms |
% |
% |
|||||||||||
|
Comfort Inn |
1,413 |
110,652 |
1,450 |
113,952 |
(37) |
(3,300) |
(2.6%) |
(2.9%) |
||||||||||
|
Comfort Suites |
616 |
47,667 |
624 |
48,411 |
(8) |
(744) |
(1.3%) |
(1.5%) |
||||||||||
|
Sleep |
392 |
28,431 |
394 |
28,714 |
(2) |
(283) |
(0.5%) |
(1.0%) |
||||||||||
|
Quality |
1,037 |
90,368 |
990 |
88,831 |
47 |
1,537 |
4.7% |
1.7% |
||||||||||
|
Clarion |
189 |
27,448 |
176 |
25,208 |
13 |
2,240 |
7.4% |
8.9% |
||||||||||
|
Econo Lodge |
782 |
48,381 |
774 |
48,022 |
8 |
359 |
1.0% |
0.7% |
||||||||||
|
Rodeway |
378 |
20,820 |
387 |
21,522 |
(9) |
(702) |
(2.3%) |
(3.3%) |
||||||||||
|
MainStay |
39 |
3,027 |
37 |
2,868 |
2 |
159 |
5.4% |
5.5% |
||||||||||
|
Suburban |
58 |
6,934 |
63 |
7,608 |
(5) |
(674) |
(7.9%) |
(8.9%) |
||||||||||
|
Ascend Collection |
46 |
4,084 |
34 |
2,821 |
12 |
1,263 |
35.3% |
44.8% |
||||||||||
|
Cambria Suites |
19 |
2,215 |
22 |
2,558 |
(3) |
(343) |
(13.6%) |
(13.4%) |
||||||||||
|
Domestic Franchises |
4,969 |
390,027 |
4,951 |
390,515 |
18 |
(488) |
0.4% |
(0.1%) |
||||||||||
|
International Franchises |
1,169 |
103,473 |
1,140 |
101,637 |
29 |
1,836 |
2.5% |
1.8% |
||||||||||
|
Total Franchises |
6,138 |
493,500 |
6,091 |
492,152 |
47 |
1,348 |
0.8% |
0.3% |
||||||||||
|
Exhibit 6 |
|||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||||||||||||
|
SUPPLEMENTAL INFORMATION BY BRAND |
|||||||||||||||||||
|
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS |
|||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2011 |
For the Nine Months Ended September 30, 2010 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
6 |
28 |
34 |
4 |
22 |
26 |
50% |
27% |
31% |
||||||||||
|
Comfort Suites |
7 |
4 |
11 |
13 |
1 |
14 |
(46%) |
300% |
(21%) |
||||||||||
|
Sleep |
6 |
1 |
7 |
3 |
- |
3 |
100% |
NM |
133% |
||||||||||
|
Quality |
- |
49 |
49 |
1 |
54 |
55 |
(100%) |
(9%) |
(11%) |
||||||||||
|
Clarion |
- |
12 |
12 |
- |
17 |
17 |
NM |
(29%) |
(29%) |
||||||||||
|
Econo Lodge |
- |
36 |
36 |
- |
38 |
38 |
NM |
(5%) |
(5%) |
||||||||||
|
Rodeway |
- |
32 |
32 |
1 |
26 |
27 |
(100%) |
23% |
19% |
||||||||||
|
MainStay |
1 |
3 |
4 |
4 |
- |
4 |
(75%) |
NM |
0% |
||||||||||
|
Suburban |
2 |
2 |
4 |
1 |
- |
1 |
100% |
NM |
300% |
||||||||||
|
Ascend Collection |
2 |
9 |
11 |
1 |
5 |
6 |
100% |
80% |
83% |
||||||||||
|
Cambria Suites |
4 |
- |
4 |
5 |
- |
5 |
(20%) |
NM |
(20%) |
||||||||||
|
Total Domestic System |
28 |
176 |
204 |
33 |
163 |
196 |
(15%) |
8% |
4% |
||||||||||
|
For the Three Months Ended September 30, 2011 |
For the Three Months Ended September 30, 2010 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
1 |
10 |
11 |
1 |
9 |
10 |
0% |
11% |
10% |
||||||||||
|
Comfort Suites |
6 |
- |
6 |
5 |
- |
5 |
20% |
NM |
20% |
||||||||||
|
Sleep |
3 |
- |
3 |
1 |
- |
1 |
200% |
NM |
200% |
||||||||||
|
Quality |
- |
14 |
14 |
- |
23 |
23 |
NM |
(39%) |
(39%) |
||||||||||
|
Clarion |
- |
4 |
4 |
- |
11 |
11 |
NM |
(64%) |
(64%) |
||||||||||
|
Econo Lodge |
- |
18 |
18 |
- |
16 |
16 |
NM |
13% |
13% |
||||||||||
|
Rodeway |
- |
14 |
14 |
- |
7 |
7 |
NM |
100% |
100% |
||||||||||
|
MainStay |
- |
- |
- |
1 |
- |
1 |
(100%) |
NM |
(100%) |
||||||||||
|
Suburban |
- |
1 |
1 |
- |
- |
- |
NM |
NM |
NM |
||||||||||
|
Ascend Collection |
2 |
4 |
6 |
1 |
2 |
3 |
100% |
100% |
100% |
||||||||||
|
Cambria Suites |
2 |
- |
2 |
2 |
- |
2 |
0% |
NM |
0% |
||||||||||
|
Total Domestic System |
14 |
65 |
79 |
11 |
68 |
79 |
27% |
(4%) |
0% |
||||||||||
|
` |
|||||||||||||||||||
|
Exhibit 7 |
|||||||||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||||||||||||||||||
|
DOMESTIC HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT |
|||||||||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||||||||
|
A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors. |
|||||||||||||||||||||||||
|
Variance |
|||||||||||||||||||||||||
|
September 30, 2011 |
September 30, 2010 |
||||||||||||||||||||||||
|
Units |
Units |
Conversion |
New Construction |
Total |
|||||||||||||||||||||
|
Conversion |
New Construction |
Total |
Conversion |
New Construction |
Total |
Units |
% |
Units |
% |
Units |
% |
||||||||||||||
|
Comfort Inn |
23 |
47 |
70 |
35 |
64 |
99 |
(12) |
(34%) |
(17) |
(27%) |
(29) |
(29%) |
|||||||||||||
|
Comfort Suites |
1 |
105 |
106 |
1 |
126 |
127 |
- |
0% |
(21) |
(17%) |
(21) |
(17%) |
|||||||||||||
|
Sleep Inn |
- |
62 |
62 |
1 |
81 |
82 |
(1) |
(100%) |
(19) |
(23%) |
(20) |
(24%) |
|||||||||||||
|
Quality |
29 |
5 |
34 |
38 |
9 |
47 |
(9) |
(24%) |
(4) |
(44%) |
(13) |
(28%) |
|||||||||||||
|
Clarion |
10 |
1 |
11 |
20 |
4 |
24 |
(10) |
(50%) |
(3) |
(75%) |
(13) |
(54%) |
|||||||||||||
|
Econo Lodge |
31 |
1 |
32 |
37 |
2 |
39 |
(6) |
(16%) |
(1) |
(50%) |
(7) |
(18%) |
|||||||||||||
|
Rodeway |
18 |
1 |
19 |
16 |
2 |
18 |
2 |
13% |
(1) |
(50%) |
1 |
6% |
|||||||||||||
|
MainStay |
3 |
28 |
31 |
- |
40 |
40 |
3 |
NM |
(12) |
(30%) |
(9) |
(23%) |
|||||||||||||
|
Suburban |
1 |
20 |
21 |
- |
26 |
26 |
1 |
NM |
(6) |
(23%) |
(5) |
(19%) |
|||||||||||||
|
Ascend Collection |
7 |
5 |
12 |
3 |
5 |
8 |
4 |
133% |
- |
0% |
4 |
50% |
|||||||||||||
|
Cambria Suites |
- |
32 |
32 |
- |
35 |
35 |
- |
NM |
(3) |
(9%) |
(3) |
(9%) |
|||||||||||||
|
123 |
307 |
430 |
151 |
394 |
545 |
(28) |
(19%) |
(87) |
(22%) |
(115) |
(21%) |
||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 8 |
|||||||||||
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION |
||||||||||||
|
(UNAUDITED) |
||||||||||||
|
CALCULATION OF FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS |
||||||||||||
|
(dollar amounts in thousands) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
2011 |
2010 |
2011 |
2010 |
|||||||||
|
Franchising Revenues: |
||||||||||||
|
Total Revenues |
$ 192,321 |
$ 183,801 |
$ 472,903 |
$ 441,070 |
||||||||
|
Adjustments: |
||||||||||||
|
Marketing and reservation revenues |
(104,393) |
(102,867) |
(258,192) |
(242,096) |
||||||||
|
Hotel operations |
(1,236) |
(1,068) |
(3,173) |
(3,044) |
||||||||
|
Franchising Revenues |
$ 86,692 |
$ 79,866 |
$ 211,538 |
$ 195,930 |
||||||||
|
Franchising Margins: |
||||||||||||
|
Operating Margin: |
||||||||||||
|
Total Revenues |
$ 192,321 |
$ 183,801 |
$ 472,903 |
$ 441,070 |
||||||||
|
Operating Income |
$ 62,400 |
$ 54,877 |
$ 133,201 |
$ 122,321 |
||||||||
|
Operating Margin |
32.4% |
29.9% |
28.2% |
27.7% |
||||||||
|
Adjusted Franchising Margin: |
||||||||||||
|
Franchising Revenues |
$ 86,692 |
$ 79,866 |
$ 211,538 |
$ 195,930 |
||||||||
|
Operating Income |
$ 62,400 |
$ 54,877 |
$ 133,201 |
$ 122,321 |
||||||||
|
Employee termination benefits |
408 |
263 |
825 |
497 |
||||||||
|
Hotel operations |
(336) |
(245) |
(580) |
(657) |
||||||||
|
$ 62,472 |
$ 54,895 |
$ 133,446 |
$ 122,161 |
|||||||||
|
Adjusted Franchising Margins |
72.1% |
68.7% |
63.1% |
62.3% |
||||||||
|
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS |
||||||||||||
|
(dollar amounts in thousands) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
2011 |
2010 |
2011 |
2010 |
|||||||||
|
Selling, general and administrative costs |
$ 22,555 |
$ 23,156 |
$ 72,941 |
$ 67,796 |
||||||||
|
Employee termination benefits |
(408) |
(263) |
(825) |
(497) |
||||||||
|
Adjusted Selling, General and Administrative Costs |
$ 22,147 |
$ 22,893 |
$ 72,116 |
$ 67,299 |
||||||||
|
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) |
||||||||||||
|
(In thousands, except per share amounts) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||
|
2011 |
2010 |
2011 |
2010 |
|||||||||
|
Net Income |
$ 42,302 |
$ 40,494 |
$ 85,610 |
$ 83,298 |
||||||||
|
Adjustments: |
||||||||||||
|
Employee termination benefits |
257 |
165 |
519 |
311 |
||||||||
|
Loss on land held for sale |
- |
- |
1,111 |
- |
||||||||
|
Adjusted Net Income |
$ 42,559 |
$ 40,659 |
$ 87,240 |
$ 83,609 |
||||||||
|
Weighted average shares outstanding-diluted |
59,807 |
59,658 |
59,805 |
59,646 |
||||||||
|
Diluted Earnings Per Share |
$ 0.71 |
$ 0.68 |
$ 1.43 |
$ 1.40 |
||||||||
|
Adjustments: |
||||||||||||
|
Employee termination benefits |
- |
- |
0.01 |
- |
||||||||
|
Loss on land held for sale |
- |
- |
0.02 |
- |
||||||||
|
Adjusted Diluted Earnings Per Share (EPS) |
$ 0.71 |
$ 0.68 |
$ 1.46 |
$ 1.40 |
||||||||
|
Adjusted EBITDA Reconciliation |
||||||||||||
|
(in millions) |
||||||||||||
|
Q3 2011 Actuals |
Q3 2010 Actuals |
Nine Months Ended September 30, 2011 Actuals |
Nine Months Ended September 30, 2010 Actuals |
Full-Year 2011 Outlook |
||||||||
|
Operating Income (per GAAP) |
$ 62.4 |
$ 54.9 |
$ 133.2 |
$ 122.3 |
$ 174.0 |
|||||||
|
Employee termination benefits |
0.4 |
0.3 |
0.8 |
0.5 |
0.8 |
|||||||
|
Depreciation and amortization |
2.1 |
2.1 |
6.0 |
6.5 |
8.2 |
|||||||
|
Adjusted Earnings before interest, taxes, depreciation & amortization (non-GAAP) |
$ 64.9 |
$ 57.3 |
$ 140.0 |
$ 129.3 |
$ 183.0 |
|||||||
SOURCE Choice Hotels International, Inc.
CONTACT: David White, Senior Vice President, Chief Financial Officer & Treasurer, +1-301-592-5117 or David Peikin, Senior Director, Corporate Communications, +1-301-592-6361
Web Site: http://www.choicehotels.com
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