SILVER SPRING, Md., Feb. 20, 2012 /PRNewswire/ --Choice Hotels International, Inc., (NYSE: CHH) today reported the following highlights for fourth quarter and full year 2011:
Full Year Results
-- Adjusted diluted earnings per share ("EPS") for full year 2011 were
$1.92 compared to $1.82 for full year 2010. Diluted EPS were $1.85 for
2011 compared to $1.80 for 2010. Adjusted diluted EPS for full year
2011 and 2010 exclude certain special items, as described below,
totaling $0.07 and $0.02, respectively.
-- Excluding special items, adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA") increased 8% to $184.3 million
for the year ended December 31, 2011, compared to $170.8 million for the
year ended December 31, 2010. Operating income increased 7% from $160.8
million for the year ended December 31, 2010 to $171.9 million for same
period of 2011.
-- Franchising revenues increased 9% from $262.8 million for the year ended
December 31, 2010 to $285.4 million for the same period of 2011. Total
revenues increased 7% to $638.8 million for the year ended December 31,
2011 compared to the same period of 2010.
-- The effective income tax rate for the year ended December 31, 2011 was
30.1% compared to 32.1% for the same period of the prior year. Excluding
discrete items, totaling $5.1 million and $3.2 million recorded during
the years ended December 31, 2011 and 2010, the company's effective
income tax rate was approximately 33.4% and 34.2%, respectively.
-- Worldwide unit growth increased 0.6 percent from December 31, 2010
comprised of domestic and international unit growth of 0.2 percent and
2.4 percent, respectively.
-- Domestic system-wide revenue per available room ("RevPAR") increased
6.2% for full year 2011 compared to the same period of 2010 as occupancy
and average daily rates increased 220 basis points and 1.9 percent,
respectively.
-- The effective royalty rate increased 3 basis points to 4.32% for the
year ended December 31, 2011 compared to 4.29% for the same period of
the prior year.
-- The company executed 332 new domestic hotel franchise contracts for the
year ended December 31, 2011 compared to 357 new domestic hotel
franchise contracts in the prior year.
-- The number of worldwide hotels under construction, awaiting conversion
or approved for development at December 31, 2011 was 490 hotels
representing 39,675 rooms;
-- During the year ended December 31, 2011, the company purchased
approximately 1.6 million shares of its common stock at an average price
of $31.59 for a total cost of $51.0 million under the share repurchase
program.
Fourth Quarter Results
-- Adjusted EPS for fourth quarter 2011 increased 10% to $0.46 compared to
$0.42 for the same period of the prior year. Diluted EPS were $0.42 for
the fourth quarter of 2011 compared to $0.40 for the same period of
2010. Adjusted diluted EPS for fourth quarter 2011 and 2010 exclude
certain special items, as described below, totaling $0.04 and $0.02,
respectively.
-- Excluding special items, adjusted EBITDA were $44.3 million for the
three months ended December 31, 2011, compared to $41.5 million for the
same period of 2010. Operating income for the three months ended
December 31, 2011 and 2010 was $38.7 million and $38.4 million,
respectively.
-- Franchising revenues increased 10% from $66.9 million for the three
months ended December 31, 2010 to $73.9 million for the same period of
2011. Total revenues for the three months ended December 31, 2011
increased 7% compared to the same period of 2010.
-- Domestic system-wide RevPAR increased 7.8% for the fourth quarter of
2011 compared to the same period of 2010 as a result of occupancy rates
increasing 260 basis points and a 2.7% increase in average daily rates.
-- The company executed 128 new domestic hotel franchise contracts for the
three months ended December 31, 2011 compared to 161 contracts executed
in the same period of the prior year.
"We are pleased with the continued strong gains we achieved in domestic RevPAR during the fourth quarter and the growth of our global franchise system," said Stephen P. Joyce, president and chief executive officer. "While the near term franchise sales environment remains challenging, we believe that our well-known diversified brands will continue to resonate with developers and hotel owners due to our focus on owners' property-level profitability and return on investment. We remain focused on prudently managing our brands, gaining operating efficiencies and returning value to our shareholders."
Special Items
During the three months and year ended December 31, 2011, the company recorded employee termination benefit charges included in selling, general and administration ("SG&A") expenses of approximately $3.6 million and $4.4 million, respectively. In addition, during the year ended December 31, 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 special items represent diluted EPS of $0.04 and $0.07 for the three months and year ended December 31, 2011, respectively.
During the three months and year ended December 31, 2010, the company recorded employee termination benefit charges in SG&A of approximately $1.2 million and $1.7 million, respectively. These special items represent diluted EPS of $0.02 for both the three months and year ended December 31, 2010.
Outlook for 2012
The company's first quarter 2012 diluted EPS is expected to be at least $0.30. The company expects full-year 2012 diluted EPS to range between $1.99 and $2.04. EBITDA for full-year 2012 are expected to range between $199 million and $203 million. These estimates include the following assumptions:
-- The company expects net domestic unit growth to be relatively flat in
2012;
-- RevPAR is expected to increase approximately 8% for first quarter of
2012 and increase between approximately 4% and 6% for full-year 2012;
-- The effective royalty rate is expected to increase 1 basis point for
full-year 2012;
-- During the fourth quarter of 2011, the company implemented measures to
increase its productivity and streamline services that are projected to
result in future cost savings. As a result of these measures as well as
expected reduction of certain variable incentive compensation and
employee termination benefits, the company's 2012 SG&A is projected to
decline approximately $15 million from the $106.4 million incurred
during the year ended December 31, 2011.
-- All figures assume the existing share count and an effective tax rate of
34.5% for the first quarter and full-year 2012.
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 year ended December 31, 2011 the company paid $43.7 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 year ended December 31, 2011, the company purchased approximately 1.6 million shares of its common stock at an average price of $31.59 for a total cost of $51.0 million under the share repurchase program. Subsequent to December 31, 2011 and through February 20, 2012, the company repurchased an additional 0.2 million shares for a total cost of $5.9 million at an average price of $36.49 and has authorization to purchase up to an additional 1.8 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 44.8 million shares of its common stock for a total cost of $1.1 billion through December 31, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 77.8 million shares through December 31, 2011 under the share repurchase program at an average price of $13.73 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 Tuesday, February 21, 2012 at 9:30 a.m. EST to discuss the company's fourth quarter and full-year 2011 results. The dial-in number to listen to the call is 1-866-383-7989, and the access code is 60035894. International callers should dial 1-617-597-5328 and enter the access code 60035894. 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 11:30 a.m. EST on Tuesday, February 21, 2012 through Wednesday, March 28, 2012 by calling 1-888-286-8010 and entering access code 88211651. The international dial-in number for the replay is 617-801-6888, access code 88211651. 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 495,000 rooms, in the United States and more than 30 other countries and territories. As of December 31, 2011, more than 400 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 30,000 rooms, and approximately 80 hotels, representing approximately 7,000 rooms, were under construction, awaiting conversion or approved for development in 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 system 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 system 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 years ended December 31, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the year ended December 31, 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.
2012 Choice Hotels International, Inc. All rights reserved.
Choice Hotels International, Inc. Exhibit 1
Consolidated Statements of Income
(Unaudited)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
Variance Variance
2011 2010 $ % 2011 2010 $ %
---- ---- --- --- ---- ---- --- ---
(In thousands,
except per share
amounts)
REVENUES:
Royalty
fees $63,344 $59,067 $4,277 7% $247,240 $230,096 $17,144 7%
Initial franchise
and relicensing
fees 4,889 2,758 2,131 77% 13,557 9,295 4,262 46%
Procurement
services 3,913 3,595 318 9% 17,619 17,207 412 2%
Marketing and
reservation 90,844 87,150 3,694 4% 349,036 329,246 19,790 6%
Hotel
operations 1,183 987 196 20% 4,356 4,031 325 8%
Other 1,717 1,449 268 18% 6,985 6,201 784 13%
----- ----- --- --- ----- ----- --- ---
Total
revenues 165,890 155,006 10,884 7% 638,793 596,076 42,717 7%
OPERATING
EXPENSES:
Selling, general
and
administrative 33,463 26,744 6,719 25% 106,404 94,540 11,864 13%
Depreciation and
amortization 2,048 1,872 176 9% 8,024 8,342 (318) (4%)
Marketing and
reservation 90,844 87,150 3,694 4% 349,036 329,246 19,790 6%
Hotel
operations 873 799 74 9% 3,466 3,186 280 9%
--- --- --- --- ----- ----- --- ---
Total operating
expenses 127,228 116,565 10,663 9% 466,930 435,314 31,616 7%
Operating
income 38,662 38,441 221 1% 171,863 160,762 11,101 7%
OTHER INCOME AND
EXPENSES:
Interest
expense 3,220 3,520 (300) (9%) 12,939 6,680 6,259 94%
Interest
income (369) (192) (177) 92% (1,306) (548) (758) 138%
Other (gains) and
losses (1,236) (1,066) (170) 16% 2,442 (2,355) 4,797 (204%)
Equity in net
income of
affiliates (7) (336) 329 (98%) (269) (1,226) 957 (78%)
--- ---- --- ----- ---- ------ --- -----
Total other
income and
expenses, net 1,608 1,926 (318) (17%) 13,806 2,551 11,255 441%
----- ----- ---- ----- ------ ----- ------ ---
Income before
income taxes 37,054 36,515 539 1% 158,057 158,211 (154) (0%)
Income
taxes 12,268 12,372 (104) (1%) 47,661 50,770 (3,109) (6%)
------ ------ ---- ------ ------ ------
Net income $24,786 $24,143 $643 3% $110,396 $107,441 $2,955 3%
======= ======= ==== === ======== ======== ====== ===
Basic earnings
per share $0.42 $0.41 $0.01 2% $1.86 $1.80 $0.06 3%
===== ===== ===== === ===== ===== ===== ===
Diluted earnings
per share $0.42 $0.40 $0.02 5% $1.85 $1.80 $0.05 3%
===== ===== ===== === ===== ===== ===== ===
Choice Hotels International, Inc. Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share amounts) December 31, December 31,
2011 2010
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $107,057 $91,259
Accounts receivable, net 53,012 47,638
Investments, employee benefit plans, at
fair value 12,094 -
Deferred income taxes - 429
Other current assets 22,633 24,256
------ ------
Total current assets 194,796 163,582
Fixed assets and intangibles, net 135,252 142,528
Receivable --marketing and reservation
fees 54,014 42,507
Investments, employee benefit plans, at
fair value 11,678 23,365
Other assets 51,949 39,740
------ ------
Total assets $447,689 $411,722
-------- --------
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses $92,240 $88,986
Deferred revenue 68,825 67,322
Revolving credit facility - 200
Deferred compensation & retirement plan
obligations 18,935 2,552
Current portion of long-term debt 673 420
Other current liabilities 3,892 5,778
----- -----
Total current liabilities 184,565 165,258
Long-term debt 252,032 251,554
Deferred compensation & retirement plan
obligations 20,593 35,707
Other liabilities 16,060 17,274
------ ------
Total liabilities 473,250 469,793
Common stock, $0.01 par value 583 596
Additional paid-in-capital 102,665 92,774
Accumulated other comprehensive loss (6,801) (7,192)
Treasury stock, at cost (916,955) (872,306)
Retained earnings 794,947 728,057
------- -------
Total shareholders' deficit (25,561) (58,071)
Total liabilities and
shareholders' deficit $447,689 $411,722
-------- --------
Choice Hotels International, Inc. Exhibit 3
Consolidated Statements of Cash
Flows
(Unaudited)
(In thousands) Year Ended December 31,
-----------------------
2011 2010
---- ----
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $110,396 $107,441
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 8,024 8,342
Provision for bad debts 2,160 3,547
Non-cash stock compensation and
other charges 14,511 9,304
Non-cash interest and other
(income) loss 2,208 (1,711)
Dividends received from equity
method investments 1,139 1,155
Equity in net income of
affiliates (269) (1,226)
Changes in assets and
liabilities, net of
acquisitions:
Receivables (7,785) (9,229)
Receivable -marketing and
reservation fees, net 623 4,654
Accounts payable (1,851) 5,744
Accrued expenses 6,346 10,630
Income taxes payable/receivable (4,562) (1,417)
Deferred income taxes 5,514 (2,381)
Deferred revenue 1,523 15,413
Other assets (3,162) (12,705)
Other liabilities 29 7,374
--- -----
NET CASH PROVIDED BY OPERATING
ACTIVITIES 134,844 144,935
------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Investment in property and
equipment (10,924) (24,368)
Equity method investments (5,000) -
Issuance of notes receivable (12,766) (11,786)
Collections of notes receivable 4,754 5,083
Proceeds from sale of assets 1,654 -
Purchases of investments,
employee benefit plans (1,602) (1,948)
Proceeds from sales of
investments, employee benefit
plans 644 1,649
Acquisitions, net of cash
acquired - (466)
Other items, net (564) (319)
---- ----
NET CASH USED IN INVESTING
ACTIVITIES (23,804) (32,155)
------- -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from the issuance of
long-term debt 75 247,733
Net repayments pursuant to
revolving credit facilities (200) (277,500)
Principal payments on long-term
debt (297) (25)
Settlement of forward starting
interest rate swap agreement - (8,663)
Debt issuance costs (2,356) (800)
Purchase of treasury stock (53,617) (11,212)
Excess tax benefits from stock-
based compensation 1,227 625
Dividends paid (43,747) (43,808)
Proceeds from exercise of stock
options 3,845 2,457
----- -----
NET CASH USED IN FINANCING
ACTIVITIES (95,070) (91,193)
------- -------
Net change in cash and cash
equivalents 15,970 21,587
Effect of foreign exchange rate
changes on cash and cash
equivalents (172) 1,802
Cash and cash equivalents at
beginning of period 91,259 67,870
------ ------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $107,057 $91,259
======== =======
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
For the Year Ended December 31, 2011* For the Year Ended December 31, 2010* Change
------------------------------------- ------------------------------------- ------
Average
Average Daily Average Daily Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $79.41 57.5% $45.62 $77.21 55.6% $42.93 2.8% 190 bps 6.3%
Comfort Suites 83.72 58.6% 49.09 82.48 55.2% 45.53 1.5% 340 bps 7.8%
Sleep 69.96 53.6% 37.49 68.82 51.6% 35.52 1.7% 200 bps 5.5%
Quality 67.75 50.0% 33.86 66.81 48.1% 32.11 1.4% 190 bps 5.5%
Clarion 73.89 46.9% 34.64 75.15 43.7% 32.86 (1.7%) 320 bps 5.4%
Econo Lodge 54.71 47.5% 25.96 54.10 45.8% 24.80 1.1% 170 bps 4.7%
Rodeway 51.87 48.7% 25.27 51.07 45.8% 23.38 1.6% 290 bps 8.1%
MainStay 66.16 67.7% 44.80 65.60 63.6% 41.71 0.9% 410 bps 7.4%
Suburban 40.26 67.5% 27.15 39.23 63.8% 25.03 2.6% 370 bps 8.5%
Ascend Collection 113.59 60.3% 68.44 112.50 57.6% 64.81 1.0% 270 bps 5.6%
------ ---- ----- ------ ---- ----- --- --- --- ---
Total $71.83 53.5% $38.44 $70.50 51.3% $36.18 1.9% 220 bps 6.2%
====== ==== ====== ====== ==== ====== === === === ===
* Operating statistics represent hotel operations from December through November
For the Three Months Ended December 31, 2011* For the Three Months Ended December 31, 2010* Change
--------------------------------------------- --------------------------------------------- ------
Average
Average Daily Average Daily Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $79.92 58.8% $46.98 $77.36 56.3% $43.54 3.3% 250 bps 7.9%
Comfort Suites 83.13 59.2% 49.23 81.17 55.4% 44.96 2.4% 380 bps 9.5%
Sleep 70.06 54.0% 37.80 68.47 51.2% 35.04 2.3% 280 bps 7.9%
Quality 67.17 50.2% 33.74 65.35 48.2% 31.52 2.8% 200 bps 7.0%
Clarion 74.27 47.6% 35.32 74.05 44.9% 33.23 0.3% 270 bps 6.3%
Econo Lodge 54.62 48.3% 26.37 53.59 46.2% 24.77 1.9% 210 bps 6.5%
Rodeway 51.12 49.1% 25.11 50.00 45.2% 22.60 2.2% 390 bps 11.1%
MainStay 66.12 69.7% 46.06 64.30 63.1% 40.56 2.8% 660 bps 13.6%
Suburban 40.31 66.6% 26.84 39.20 62.5% 24.50 2.8% 410 bps 9.6%
Ascend Collection 122.22 61.0% 74.56 127.73 60.4% 77.12 (4.3%) 60 bps (3.3%)
------ ---- ----- ------ ---- ----- ------ --- --- ------
Total $71.98 54.2% $39.03 $70.09 51.6% $36.19 2.7% 260 bps 7.8%
====== ==== ====== ====== ==== ====== === === === ===
* Operating statistics represent hotel operations from September through November
For the Quarter Ended For the Year Ended
--------------------- ------------------
12/31/2011 12/31/2010 12/31/2011 12/31/2010
System-wide
effective
royalty rate 4.31% 4.31% 4.32% 4.29%
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
December 31, 2011 December 31, 2010 Variance
----------------- ----------------- --------
Hotels Rooms Hotels Rooms Hotels Rooms % %
------ ----- ------ ----- ------ ----- --- ---
Comfort
Inn 1,399 109,330 1,435 112,169 (36) (2,839) (2.5%) (2.5%)
Comfort
Suites 616 47,738 623 48,246 (7) (508) (1.1%) (1.1%)
Sleep 394 28,568 398 28,957 (4) (389) (1.0%) (1.3%)
Quality 1,047 91,502 1,012 89,185 35 2,317 3.5% 2.6%
Clarion 189 27,527 192 28,711 (3) (1,184) (1.6%) (4.1%)
Econo
Lodge 797 49,483 784 48,728 13 755 1.7% 1.5%
Rodeway 388 21,627 387 21,261 1 366 0.3% 1.7%
MainStay 40 3,093 37 2,868 3 225 8.1% 7.8%
Suburban 60 7,126 64 7,685 (4) (559) (6.3%) (7.3%)
Ascend
Collection 52 4,617 38 3,025 14 1,592 36.8% 52.6%
Cambria
Suites 19 2,215 23 2,700 (4) (485) (17.4%) (18.0%)
--- ----- --- ----- --- ---- ------- -------
Domestic
Franchises 5,001 392,826 4,993 393,535 8 (709) 0.2% (0.2%)
International
Franchises 1,177 104,379 1,149 101,610 28 2,769 2.4% 2.7%
----- ------- ----- ------- --- ----- --- ---
Total
Franchises 6,178 497,205 6,142 495,145 36 2,060 0.6% 0.4%
===== ======= ===== ======= === ===== === ===
Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
For the Year Ended December 31, 2011 For the Year Ended December 31, 2010 % Change
------------------------------------ ------------------------------------ --------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 12 46 58 7 32 39 71% 44% 49%
Comfort Suites 12 4 16 21 2 23 (43%) 100% (30%)
Sleep 9 2 11 9 1 10 0% 100% 10%
Quality - 80 80 1 104 105 (100%) (23%) (24%)
Clarion - 19 19 - 37 37 NM (49%) (49%)
Econo Lodge 1 56 57 - 67 67 NM (16%) (15%)
Rodeway - 49 49 1 39 40 (100%) 26% 23%
MainStay 6 3 9 8 2 10 (25%) 50% (10%)
Suburban 5 4 9 5 1 6 0% 300% 50%
Ascend Collection 2 14 16 1 13 14 100% 8% 14%
Cambria Suites 8 - 8 6 - 6 33% NM 33%
--- --- --- --- --- --- --- --- ---
Total Domestic
System 55 277 332 59 298 357 (7%) (7%) (7%)
=== === === === === === ==== ==== ====
For the Three Months Ended December
For the Three Months Ended December 31, 2011 31, 2010 % Change
-------------------------------------------- ------------------------------------ --------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 6 18 24 3 10 13 100% 80% 85%
Comfort Suites 5 - 5 8 1 9 (38%) (100%) (44%)
Sleep 3 1 4 6 1 7 (50%) 0% (43%)
Quality - 31 31 - 50 50 NM (38%) (38%)
Clarion - 7 7 - 20 20 NM (65%) (65%)
Econo Lodge 1 20 21 - 29 29 NM (31%) (28%)
Rodeway - 17 17 - 13 13 NM 31% 31%
MainStay 5 - 5 4 2 6 25% (100%) (17%)
Suburban 3 2 5 4 1 5 (25%) 100% 0%
Ascend Collection - 5 5 - 8 8 NM (38%) (38%)
Cambria Suites 4 - 4 1 - 1 300% NM 300%
--- --- --- --- --- --- --- --- ---
Total Domestic
System 27 101 128 26 135 161 4% (25%) (20%)
=== === === === === === === ===== =====
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
--------
December 31, 2011 December 31, 2010
New
Units Units Conversion Construction Total
----- ----- ---------- ------------- -----
New New
Conversion Construction Total Conversion Construction Total Units % Units % Units %
---------- ------------- ----- ---------- ------------- ----- ----- --- ----- --- ----- ---
Comfort Inn 29 46 75 30 62 92 (1) (3%) (16) (26%) (17) (18%)
Comfort Suites 1 90 91 1 122 123 - 0% (32) (26%) (32) (26%)
Sleep Inn 1 49 50 - 75 75 1 NM (26) (35%) (25) (33%)
Quality 29 5 34 33 8 41 (4) (12%) (3) (38%) (7) (17%)
Clarion 14 1 15 18 2 20 (4) (22%) (1) (50%) (5) (25%)
Econo Lodge 25 2 27 35 2 37 (10) (29%) - 0% (10) (27%)
Rodeway 22 1 23 12 2 14 10 83% (1) (50%) 9 64%
MainStay 2 28 30 1 42 43 1 100% (14) (33%) (13) (30%)
Suburban 2 20 22 - 27 27 2 NM (7) (26%) (5) (19%)
Ascend Collection 6 4 10 6 4 10 - 0% - 0% - 0%
Cambria Suites - 31 31 - 34 34 - NM (3) (9%) (3) (9%)
--- --- --- --- --- --- --- --- --- ---- --- ----
Total Domestic
Pipeline 131 277 408 136 380 516 (5) (4%) (103) (27%) (108) (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 December 31, Year Ended December 31,
------------------------------- -----------------------
2011 2010 2011 2010
---- ---- ---- ----
Franchising Revenues:
Total Revenues $165,890 $155,006 $638,793 $596,076
Adjustments:
Marketing and reservation revenues (90,844) (87,150) (349,036) (329,246)
Hotel operations (1,183) (987) (4,356) (4,031)
Franchising Revenues $73,863 $66,869 $285,401 $262,799
------- ------- -------- --------
Franchising Margins:
Operating Margin:
Total Revenues $165,890 $155,006 $638,793 $596,076
Operating Income $38,662 $38,441 $171,863 $160,762
Operating Margin 23.3% 24.8% 26.9% 27.0%
---- ---- ---- ----
Adjusted Franchising Margin:
Franchising Revenues $73,863 $66,869 $285,401 $262,799
Operating Income $38,662 $38,441 $171,863 $160,762
Employee termination benefits 3,619 1,233 4,444 1,730
Hotel operations (310) (188) (890) (845)
$41,971 $39,486 $175,417 $161,647
------- ------- -------- --------
Adjusted Franchising Margins 56.8% 59.0% 61.5% 61.5%
---- ---- ---- ----
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS
(dollar amounts in thousands) Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2011 2010 2011 2010
---- ---- ---- ----
Selling, general and
administrative expense $33,463 $26,744 $106,404 $94,540
Employee termination benefits (3,619) (1,233) (4,444) (1,730)
Adjusted Selling, General and
Administrative Expense $29,844 $25,511 $101,960 $92,810
======= ======= ======== =======
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
(In thousands, except per share
amounts) Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2011 2010 2011 2010
---- ---- ---- ----
Net Income $24,786 $24,143 $110,396 $107,441
Adjustments:
Employee termination benefits 2,291 772 2,813 1,083
Loss on land held for sale - - 1,119 -
--- --- ----- ---
Adjusted Net Income $27,077 $24,915 $114,328 $108,524
------- ------- -------- --------
Weighted average shares
outstanding-diluted 58,608 59,706 59,525 59,656
Diluted Earnings Per Share $0.42 $0.40 $1.85 $1.80
Adjustments:
Employee termination benefits 0.04 0.02 0.05 0.02
Loss on land held for sale - - 0.02 -
--- --- ---- ---
Adjusted Diluted Earnings Per
Share (EPS) $0.46 $0.42 $1.92 $1.82
----- ----- ----- -----
Adjusted EBITDA Reconciliation
(in millions)
Q4 2011 Actuals Q4 2010 Actuals Year Ended December Year Ended December Full-Year 2012
--------------- --------------- 31, 2011 Actuals 31, 2010 Actuals Outlook
---------------- ---------------- -------
Operating Income (per GAAP) $38.7 $38.4 $171.9 $160.8 $190 - $194
Employee termination benefits 3.6 1.2 4.4 1.7 -
Depreciation and amortization 2.0 1.9 8.0 8.3 9
Adjusted Earnings before interest,
taxes, depreciation & $44.3 $41.5 $184.3 $170.8 $199 - $203
amortization (non-GAAP) ===== ===== ====== ====== ===========
SOURCE Choice Hotels International, Inc.
SOURCE: Choice Hotels International, Inc.
PR Newswire
SILVER SPRING, Md., Feb. 20, 2012
SILVER SPRING, Md., Feb. 20, 2012 /PRNewswire/ --Choice Hotels International, Inc., (NYSE: CHH) today reported the following highlights for fourth quarter and full year 2011:
Full Year Results
Fourth Quarter Results
"We are pleased with the continued strong gains we achieved in domestic RevPAR during the fourth quarter and the growth of our global franchise system," said Stephen P. Joyce, president and chief executive officer. "While the near term franchise sales environment remains challenging, we believe that our well-known diversified brands will continue to resonate with developers and hotel owners due to our focus on owners' property-level profitability and return on investment. We remain focused on prudently managing our brands, gaining operating efficiencies and returning value to our shareholders."
Special Items
During the three months and year ended December 31, 2011, the company recorded employee termination benefit charges included in selling, general and administration ("SG&A") expenses of approximately $3.6 million and $4.4 million, respectively. In addition, during the year ended December 31, 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 special items represent diluted EPS of $0.04 and $0.07 for the three months and year ended December 31, 2011, respectively.
During the three months and year ended December 31, 2010, the company recorded employee termination benefit charges in SG&A of approximately $1.2 million and $1.7 million, respectively. These special items represent diluted EPS of $0.02 for both the three months and year ended December 31, 2010.
Outlook for 2012
The company's first quarter 2012 diluted EPS is expected to be at least $0.30. The company expects full-year 2012 diluted EPS to range between $1.99 and $2.04. EBITDA for full-year 2012 are expected to range between $199 million and $203 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 year ended December 31, 2011 the company paid $43.7 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 year ended December 31, 2011, the company purchased approximately 1.6 million shares of its common stock at an average price of $31.59 for a total cost of $51.0 million under the share repurchase program. Subsequent to December 31, 2011 and through February 20, 2012, the company repurchased an additional 0.2 million shares for a total cost of $5.9 million at an average price of $36.49 and has authorization to purchase up to an additional 1.8 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 44.8 million shares of its common stock for a total cost of $1.1 billion through December 31, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 77.8 million shares through December 31, 2011 under the share repurchase program at an average price of $13.73 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 Tuesday, February 21, 2012 at 9:30 a.m. EST to discuss the company's fourth quarter and full-year 2011 results. The dial-in number to listen to the call is 1-866-383-7989, and the access code is 60035894. International callers should dial 1-617-597-5328 and enter the access code 60035894. 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 11:30 a.m. EST on Tuesday, February 21, 2012 through Wednesday, March 28, 2012 by calling 1-888-286-8010 and entering access code 88211651. The international dial-in number for the replay is 617-801-6888, access code 88211651. 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 495,000 rooms, in the United States and more than 30 other countries and territories. As of December 31, 2011, more than 400 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 30,000 rooms, and approximately 80 hotels, representing approximately 7,000 rooms, were under construction, awaiting conversion or approved for development in 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 system 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 system 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 years ended December 31, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the year ended December 31, 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.
2012 Choice Hotels International, Inc. All rights reserved.
|
Choice Hotels International, Inc. |
Exhibit 1 |
|||||||||||||||||||
|
Consolidated Statements of Income |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||||||
|
Variance |
Variance |
|||||||||||||||||||
|
2011 |
2010 |
$ |
% |
2011 |
2010 |
$ |
% |
|||||||||||||
|
(In thousands, except per share amounts) |
||||||||||||||||||||
|
REVENUES: |
||||||||||||||||||||
|
Royalty fees |
$ 63,344 |
$ 59,067 |
$ 4,277 |
7% |
$ 247,240 |
$ 230,096 |
$ 17,144 |
7% |
||||||||||||
|
Initial franchise and relicensing fees |
4,889 |
2,758 |
2,131 |
77% |
13,557 |
9,295 |
4,262 |
46% |
||||||||||||
|
Procurement services |
3,913 |
3,595 |
318 |
9% |
17,619 |
17,207 |
412 |
2% |
||||||||||||
|
Marketing and reservation |
90,844 |
87,150 |
3,694 |
4% |
349,036 |
329,246 |
19,790 |
6% |
||||||||||||
|
Hotel operations |
1,183 |
987 |
196 |
20% |
4,356 |
4,031 |
325 |
8% |
||||||||||||
|
Other |
1,717 |
1,449 |
268 |
18% |
6,985 |
6,201 |
784 |
13% |
||||||||||||
|
Total revenues |
165,890 |
155,006 |
10,884 |
7% |
638,793 |
596,076 |
42,717 |
7% |
||||||||||||
|
OPERATING EXPENSES: |
||||||||||||||||||||
|
Selling, general and administrative |
33,463 |
26,744 |
6,719 |
25% |
106,404 |
94,540 |
11,864 |
13% |
||||||||||||
|
Depreciation and amortization |
2,048 |
1,872 |
176 |
9% |
8,024 |
8,342 |
(318) |
(4%) |
||||||||||||
|
Marketing and reservation |
90,844 |
87,150 |
3,694 |
4% |
349,036 |
329,246 |
19,790 |
6% |
||||||||||||
|
Hotel operations |
873 |
799 |
74 |
9% |
3,466 |
3,186 |
280 |
9% |
||||||||||||
|
Total operating expenses |
127,228 |
116,565 |
10,663 |
9% |
466,930 |
435,314 |
31,616 |
7% |
||||||||||||
|
Operating income |
38,662 |
38,441 |
221 |
1% |
171,863 |
160,762 |
11,101 |
7% |
||||||||||||
|
OTHER INCOME AND EXPENSES: |
||||||||||||||||||||
|
Interest expense |
3,220 |
3,520 |
(300) |
(9%) |
12,939 |
6,680 |
6,259 |
94% |
||||||||||||
|
Interest income |
(369) |
(192) |
(177) |
92% |
(1,306) |
(548) |
(758) |
138% |
||||||||||||
|
Other (gains) and losses |
(1,236) |
(1,066) |
(170) |
16% |
2,442 |
(2,355) |
4,797 |
(204%) |
||||||||||||
|
Equity in net income of affiliates |
(7) |
(336) |
329 |
(98%) |
(269) |
(1,226) |
957 |
(78%) |
||||||||||||
|
Total other income and expenses, net |
1,608 |
1,926 |
(318) |
(17%) |
13,806 |
2,551 |
11,255 |
441% |
||||||||||||
|
Income before income taxes |
37,054 |
36,515 |
539 |
1% |
158,057 |
158,211 |
(154) |
(0%) |
||||||||||||
|
Income taxes |
12,268 |
12,372 |
(104) |
(1%) |
47,661 |
50,770 |
(3,109) |
(6%) |
||||||||||||
|
Net income |
$ 24,786 |
$ 24,143 |
$ 643 |
3% |
$ 110,396 |
$ 107,441 |
$ 2,955 |
3% |
||||||||||||
|
Basic earnings per share |
$ 0.42 |
$ 0.41 |
$ 0.01 |
2% |
$ 1.86 |
$ 1.80 |
$ 0.06 |
3% |
||||||||||||
|
Diluted earnings per share |
$ 0.42 |
$ 0.40 |
$ 0.02 |
5% |
$ 1.85 |
$ 1.80 |
$ 0.05 |
3% |
||||||||||||
|
Choice Hotels International, Inc. |
Exhibit 2 |
|||||||
|
Consolidated Balance Sheets |
||||||||
|
(In thousands, except per share amounts) |
December 31, |
December 31, |
||||||
|
2011 |
2010 |
|||||||
|
(Unaudited) |
||||||||
|
ASSETS |
||||||||
|
Cash and cash equivalents |
$ 107,057 |
$ 91,259 |
||||||
|
Accounts receivable, net |
53,012 |
47,638 |
||||||
|
Investments, employee benefit plans, at fair value |
12,094 |
- |
||||||
|
Deferred income taxes |
- |
429 |
||||||
|
Other current assets |
22,633 |
24,256 |
||||||
|
Total current assets |
194,796 |
163,582 |
||||||
|
Fixed assets and intangibles, net |
135,252 |
142,528 |
||||||
|
Receivable -- marketing and reservation fees |
54,014 |
42,507 |
||||||
|
Investments, employee benefit plans, at fair value |
11,678 |
23,365 |
||||||
|
Other assets |
51,949 |
39,740 |
||||||
|
Total assets |
$ 447,689 |
$ 411,722 |
||||||
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
||||||||
|
Accounts payable and accrued expenses |
$ 92,240 |
$ 88,986 |
||||||
|
Deferred revenue |
68,825 |
67,322 |
||||||
|
Revolving credit facility |
- |
200 |
||||||
|
Deferred compensation & retirement plan obligations |
18,935 |
2,552 |
||||||
|
Current portion of long-term debt |
673 |
420 |
||||||
|
Other current liabilities |
3,892 |
5,778 |
||||||
|
Total current liabilities |
184,565 |
165,258 |
||||||
|
Long-term debt |
252,032 |
251,554 |
||||||
|
Deferred compensation & retirement plan obligations |
20,593 |
35,707 |
||||||
|
Other liabilities |
16,060 |
17,274 |
||||||
|
Total liabilities |
473,250 |
469,793 |
||||||
|
Common stock, $0.01 par value |
583 |
596 |
||||||
|
Additional paid-in-capital |
102,665 |
92,774 |
||||||
|
Accumulated other comprehensive loss |
(6,801) |
(7,192) |
||||||
|
Treasury stock, at cost |
(916,955) |
(872,306) |
||||||
|
Retained earnings |
794,947 |
728,057 |
||||||
|
Total shareholders' deficit |
(25,561) |
(58,071) |
||||||
|
Total liabilities and shareholders' deficit |
$ 447,689 |
$ 411,722 |
||||||
|
Choice Hotels International, Inc. |
Exhibit 3 |
|||
|
Consolidated Statements of Cash Flows |
||||
|
(Unaudited) |
||||
|
(In thousands) |
Year Ended December 31, |
|||
|
2011 |
2010 |
|||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
|
Net income |
$ 110,396 |
$ 107,441 |
||
|
Adjustments to reconcile net income to net cash provided |
||||
|
by operating activities: |
||||
|
Depreciation and amortization |
8,024 |
8,342 |
||
|
Provision for bad debts |
2,160 |
3,547 |
||
|
Non-cash stock compensation and other charges |
14,511 |
9,304 |
||
|
Non-cash interest and other (income) loss |
2,208 |
(1,711) |
||
|
Dividends received from equity method investments |
1,139 |
1,155 |
||
|
Equity in net income of affiliates |
(269) |
(1,226) |
||
|
Changes in assets and liabilities, net of acquisitions: |
||||
|
Receivables |
(7,785) |
(9,229) |
||
|
Receivable - marketing and reservation fees, net |
623 |
4,654 |
||
|
Accounts payable |
(1,851) |
5,744 |
||
|
Accrued expenses |
6,346 |
10,630 |
||
|
Income taxes payable/receivable |
(4,562) |
(1,417) |
||
|
Deferred income taxes |
5,514 |
(2,381) |
||
|
Deferred revenue |
1,523 |
15,413 |
||
|
Other assets |
(3,162) |
(12,705) |
||
|
Other liabilities |
29 |
7,374 |
||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
134,844 |
144,935 |
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||
|
Investment in property and equipment |
(10,924) |
(24,368) |
||
|
Equity method investments |
(5,000) |
- |
||
|
Issuance of notes receivable |
(12,766) |
(11,786) |
||
|
Collections of notes receivable |
4,754 |
5,083 |
||
|
Proceeds from sale of assets |
1,654 |
- |
||
|
Purchases of investments, employee benefit plans |
(1,602) |
(1,948) |
||
|
Proceeds from sales of investments, employee benefit plans |
644 |
1,649 |
||
|
Acquisitions, net of cash acquired |
- |
(466) |
||
|
Other items, net |
(564) |
(319) |
||
|
NET CASH USED IN INVESTING ACTIVITIES |
(23,804) |
(32,155) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||
|
Proceeds from the issuance of long-term debt |
75 |
247,733 |
||
|
Net repayments pursuant to revolving credit facilities |
(200) |
(277,500) |
||
|
Principal payments on long-term debt |
(297) |
(25) |
||
|
Settlement of forward starting interest rate swap agreement |
- |
(8,663) |
||
|
Debt issuance costs |
(2,356) |
(800) |
||
|
Purchase of treasury stock |
(53,617) |
(11,212) |
||
|
Excess tax benefits from stock-based compensation |
1,227 |
625 |
||
|
Dividends paid |
(43,747) |
(43,808) |
||
|
Proceeds from exercise of stock options |
3,845 |
2,457 |
||
|
NET CASH USED IN FINANCING ACTIVITIES |
(95,070) |
(91,193) |
||
|
Net change in cash and cash equivalents |
15,970 |
21,587 |
||
|
Effect of foreign exchange rate changes on cash and cash equivalents |
(172) |
1,802 |
||
|
Cash and cash equivalents at beginning of period |
91,259 |
67,870 |
||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 107,057 |
$ 91,259 |
||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 4 |
|||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION |
||||||||||||||||||||||
|
DOMESTIC HOTEL SYSTEM |
||||||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||||||
|
For the Year Ended December 31, 2011* |
For the Year Ended December 31, 2010* |
Change |
||||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
||||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
||||||||||||||
|
Comfort Inn |
$ 79.41 |
57.5% |
$ 45.62 |
$ 77.21 |
55.6% |
$ 42.93 |
2.8% |
190 |
bps |
6.3% |
||||||||||||
|
Comfort Suites |
83.72 |
58.6% |
49.09 |
82.48 |
55.2% |
45.53 |
1.5% |
340 |
bps |
7.8% |
||||||||||||
|
Sleep |
69.96 |
53.6% |
37.49 |
68.82 |
51.6% |
35.52 |
1.7% |
200 |
bps |
5.5% |
||||||||||||
|
Quality |
67.75 |
50.0% |
33.86 |
66.81 |
48.1% |
32.11 |
1.4% |
190 |
bps |
5.5% |
||||||||||||
|
Clarion |
73.89 |
46.9% |
34.64 |
75.15 |
43.7% |
32.86 |
(1.7%) |
320 |
bps |
5.4% |
||||||||||||
|
Econo Lodge |
54.71 |
47.5% |
25.96 |
54.10 |
45.8% |
24.80 |
1.1% |
170 |
bps |
4.7% |
||||||||||||
|
Rodeway |
51.87 |
48.7% |
25.27 |
51.07 |
45.8% |
23.38 |
1.6% |
290 |
bps |
8.1% |
||||||||||||
|
MainStay |
66.16 |
67.7% |
44.80 |
65.60 |
63.6% |
41.71 |
0.9% |
410 |
bps |
7.4% |
||||||||||||
|
Suburban |
40.26 |
67.5% |
27.15 |
39.23 |
63.8% |
25.03 |
2.6% |
370 |
bps |
8.5% |
||||||||||||
|
Ascend Collection |
113.59 |
60.3% |
68.44 |
112.50 |
57.6% |
64.81 |
1.0% |
270 |
bps |
5.6% |
||||||||||||
|
Total |
$ 71.83 |
53.5% |
$ 38.44 |
$ 70.50 |
51.3% |
$ 36.18 |
1.9% |
220 |
bps |
6.2% |
||||||||||||
|
* Operating statistics represent hotel operations from December through November |
||||||||||||||||||||||
|
For the Three Months Ended December 31, 2011* |
For the Three Months Ended December 31, 2010* |
Change |
||||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
||||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
||||||||||||||
|
Comfort Inn |
$ 79.92 |
58.8% |
$ 46.98 |
$ 77.36 |
56.3% |
$ 43.54 |
3.3% |
250 |
bps |
7.9% |
||||||||||||
|
Comfort Suites |
83.13 |
59.2% |
49.23 |
81.17 |
55.4% |
44.96 |
2.4% |
380 |
bps |
9.5% |
||||||||||||
|
Sleep |
70.06 |
54.0% |
37.80 |
68.47 |
51.2% |
35.04 |
2.3% |
280 |
bps |
7.9% |
||||||||||||
|
Quality |
67.17 |
50.2% |
33.74 |
65.35 |
48.2% |
31.52 |
2.8% |
200 |
bps |
7.0% |
||||||||||||
|
Clarion |
74.27 |
47.6% |
35.32 |
74.05 |
44.9% |
33.23 |
0.3% |
270 |
bps |
6.3% |
||||||||||||
|
Econo Lodge |
54.62 |
48.3% |
26.37 |
53.59 |
46.2% |
24.77 |
1.9% |
210 |
bps |
6.5% |
||||||||||||
|
Rodeway |
51.12 |
49.1% |
25.11 |
50.00 |
45.2% |
22.60 |
2.2% |
390 |
bps |
11.1% |
||||||||||||
|
MainStay |
66.12 |
69.7% |
46.06 |
64.30 |
63.1% |
40.56 |
2.8% |
660 |
bps |
13.6% |
||||||||||||
|
Suburban |
40.31 |
66.6% |
26.84 |
39.20 |
62.5% |
24.50 |
2.8% |
410 |
bps |
9.6% |
||||||||||||
|
Ascend Collection |
122.22 |
61.0% |
74.56 |
127.73 |
60.4% |
77.12 |
(4.3%) |
60 |
bps |
(3.3%) |
||||||||||||
|
Total |
$ 71.98 |
54.2% |
$ 39.03 |
$ 70.09 |
51.6% |
$ 36.19 |
2.7% |
260 |
bps |
7.8% |
||||||||||||
|
* Operating statistics represent hotel operations from September through November |
||||||||||||||||||||||
|
For the Quarter Ended |
For the Year Ended |
|||||||||||
|
12/31/2011 |
12/31/2010 |
12/31/2011 |
12/31/2010 |
|||||||||
|
System-wide effective royalty rate |
4.31% |
4.31% |
4.32% |
4.29% |
||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 5 |
|||||||||||||||||
|
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA |
||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||
|
December 31, 2011 |
December 31, 2010 |
Variance |
||||||||||||||||
|
Hotels |
Rooms |
Hotels |
Rooms |
Hotels |
Rooms |
% |
% |
|||||||||||
|
Comfort Inn |
1,399 |
109,330 |
1,435 |
112,169 |
(36) |
(2,839) |
(2.5%) |
(2.5%) |
||||||||||
|
Comfort Suites |
616 |
47,738 |
623 |
48,246 |
(7) |
(508) |
(1.1%) |
(1.1%) |
||||||||||
|
Sleep |
394 |
28,568 |
398 |
28,957 |
(4) |
(389) |
(1.0%) |
(1.3%) |
||||||||||
|
Quality |
1,047 |
91,502 |
1,012 |
89,185 |
35 |
2,317 |
3.5% |
2.6% |
||||||||||
|
Clarion |
189 |
27,527 |
192 |
28,711 |
(3) |
(1,184) |
(1.6%) |
(4.1%) |
||||||||||
|
Econo Lodge |
797 |
49,483 |
784 |
48,728 |
13 |
755 |
1.7% |
1.5% |
||||||||||
|
Rodeway |
388 |
21,627 |
387 |
21,261 |
1 |
366 |
0.3% |
1.7% |
||||||||||
|
MainStay |
40 |
3,093 |
37 |
2,868 |
3 |
225 |
8.1% |
7.8% |
||||||||||
|
Suburban |
60 |
7,126 |
64 |
7,685 |
(4) |
(559) |
(6.3%) |
(7.3%) |
||||||||||
|
Ascend Collection |
52 |
4,617 |
38 |
3,025 |
14 |
1,592 |
36.8% |
52.6% |
||||||||||
|
Cambria Suites |
19 |
2,215 |
23 |
2,700 |
(4) |
(485) |
(17.4%) |
(18.0%) |
||||||||||
|
Domestic Franchises |
5,001 |
392,826 |
4,993 |
393,535 |
8 |
(709) |
0.2% |
(0.2%) |
||||||||||
|
International Franchises |
1,177 |
104,379 |
1,149 |
101,610 |
28 |
2,769 |
2.4% |
2.7% |
||||||||||
|
Total Franchises |
6,178 |
497,205 |
6,142 |
495,145 |
36 |
2,060 |
0.6% |
0.4% |
||||||||||
|
Exhibit 6 |
|||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||||||||||||
|
SUPPLEMENTAL INFORMATION BY BRAND |
|||||||||||||||||||
|
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS |
|||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||
|
For the Year Ended December 31, 2011 |
For the Year Ended December 31, 2010 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
12 |
46 |
58 |
7 |
32 |
39 |
71% |
44% |
49% |
||||||||||
|
Comfort Suites |
12 |
4 |
16 |
21 |
2 |
23 |
(43%) |
100% |
(30%) |
||||||||||
|
Sleep |
9 |
2 |
11 |
9 |
1 |
10 |
0% |
100% |
10% |
||||||||||
|
Quality |
- |
80 |
80 |
1 |
104 |
105 |
(100%) |
(23%) |
(24%) |
||||||||||
|
Clarion |
- |
19 |
19 |
- |
37 |
37 |
NM |
(49%) |
(49%) |
||||||||||
|
Econo Lodge |
1 |
56 |
57 |
- |
67 |
67 |
NM |
(16%) |
(15%) |
||||||||||
|
Rodeway |
- |
49 |
49 |
1 |
39 |
40 |
(100%) |
26% |
23% |
||||||||||
|
MainStay |
6 |
3 |
9 |
8 |
2 |
10 |
(25%) |
50% |
(10%) |
||||||||||
|
Suburban |
5 |
4 |
9 |
5 |
1 |
6 |
0% |
300% |
50% |
||||||||||
|
Ascend Collection |
2 |
14 |
16 |
1 |
13 |
14 |
100% |
8% |
14% |
||||||||||
|
Cambria Suites |
8 |
- |
8 |
6 |
- |
6 |
33% |
NM |
33% |
||||||||||
|
Total Domestic System |
55 |
277 |
332 |
59 |
298 |
357 |
(7%) |
(7%) |
(7%) |
||||||||||
|
For the Three Months Ended December 31, 2011 |
For the Three Months Ended December 31, 2010 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
6 |
18 |
24 |
3 |
10 |
13 |
100% |
80% |
85% |
||||||||||
|
Comfort Suites |
5 |
- |
5 |
8 |
1 |
9 |
(38%) |
(100%) |
(44%) |
||||||||||
|
Sleep |
3 |
1 |
4 |
6 |
1 |
7 |
(50%) |
0% |
(43%) |
||||||||||
|
Quality |
- |
31 |
31 |
- |
50 |
50 |
NM |
(38%) |
(38%) |
||||||||||
|
Clarion |
- |
7 |
7 |
- |
20 |
20 |
NM |
(65%) |
(65%) |
||||||||||
|
Econo Lodge |
1 |
20 |
21 |
- |
29 |
29 |
NM |
(31%) |
(28%) |
||||||||||
|
Rodeway |
- |
17 |
17 |
- |
13 |
13 |
NM |
31% |
31% |
||||||||||
|
MainStay |
5 |
- |
5 |
4 |
2 |
6 |
25% |
(100%) |
(17%) |
||||||||||
|
Suburban |
3 |
2 |
5 |
4 |
1 |
5 |
(25%) |
100% |
0% |
||||||||||
|
Ascend Collection |
- |
5 |
5 |
- |
8 |
8 |
NM |
(38%) |
(38%) |
||||||||||
|
Cambria Suites |
4 |
- |
4 |
1 |
- |
1 |
300% |
NM |
300% |
||||||||||
|
Total Domestic System |
27 |
101 |
128 |
26 |
135 |
161 |
4% |
(25%) |
(20%) |
||||||||||
|
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 |
|||||||||||||||||||||||||
|
December 31, 2011 |
December 31, 2010 |
||||||||||||||||||||||||
|
Units |
Units |
Conversion |
New Construction |
Total |
|||||||||||||||||||||
|
Conversion |
New Construction |
Total |
Conversion |
New Construction |
Total |
Units |
% |
Units |
% |
Units |
% |
||||||||||||||
|
Comfort Inn |
29 |
46 |
75 |
30 |
62 |
92 |
(1) |
(3%) |
(16) |
(26%) |
(17) |
(18%) |
|||||||||||||
|
Comfort Suites |
1 |
90 |
91 |
1 |
122 |
123 |
- |
0% |
(32) |
(26%) |
(32) |
(26%) |
|||||||||||||
|
Sleep Inn |
1 |
49 |
50 |
- |
75 |
75 |
1 |
NM |
(26) |
(35%) |
(25) |
(33%) |
|||||||||||||
|
Quality |
29 |
5 |
34 |
33 |
8 |
41 |
(4) |
(12%) |
(3) |
(38%) |
(7) |
(17%) |
|||||||||||||
|
Clarion |
14 |
1 |
15 |
18 |
2 |
20 |
(4) |
(22%) |
(1) |
(50%) |
(5) |
(25%) |
|||||||||||||
|
Econo Lodge |
25 |
2 |
27 |
35 |
2 |
37 |
(10) |
(29%) |
- |
0% |
(10) |
(27%) |
|||||||||||||
|
Rodeway |
22 |
1 |
23 |
12 |
2 |
14 |
10 |
83% |
(1) |
(50%) |
9 |
64% |
|||||||||||||
|
MainStay |
2 |
28 |
30 |
1 |
42 |
43 |
1 |
100% |
(14) |
(33%) |
(13) |
(30%) |
|||||||||||||
|
Suburban |
2 |
20 |
22 |
- |
27 |
27 |
2 |
NM |
(7) |
(26%) |
(5) |
(19%) |
|||||||||||||
|
Ascend Collection |
6 |
4 |
10 |
6 |
4 |
10 |
- |
0% |
- |
0% |
- |
0% |
|||||||||||||
|
Cambria Suites |
- |
31 |
31 |
- |
34 |
34 |
- |
NM |
(3) |
(9%) |
(3) |
(9%) |
|||||||||||||
|
Total Domestic Pipeline |
131 |
277 |
408 |
136 |
380 |
516 |
(5) |
(4%) |
(103) |
(27%) |
(108) |
(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 December 31, |
Year Ended December 31, |
||||||||||
|
2011 |
2010 |
2011 |
2010 |
|||||||||
|
Franchising Revenues: |
||||||||||||
|
Total Revenues |
$ 165,890 |
$ 155,006 |
$ 638,793 |
$ 596,076 |
||||||||
|
Adjustments: |
||||||||||||
|
Marketing and reservation revenues |
(90,844) |
(87,150) |
(349,036) |
(329,246) |
||||||||
|
Hotel operations |
(1,183) |
(987) |
(4,356) |
(4,031) |
||||||||
|
Franchising Revenues |
$ 73,863 |
$ 66,869 |
$ 285,401 |
$ 262,799 |
||||||||
|
Franchising Margins: |
||||||||||||
|
Operating Margin: |
||||||||||||
|
Total Revenues |
$ 165,890 |
$ 155,006 |
$ 638,793 |
$ 596,076 |
||||||||
|
Operating Income |
$ 38,662 |
$ 38,441 |
$ 171,863 |
$ 160,762 |
||||||||
|
Operating Margin |
23.3% |
24.8% |
26.9% |
27.0% |
||||||||
|
Adjusted Franchising Margin: |
||||||||||||
|
Franchising Revenues |
$ 73,863 |
$ 66,869 |
$ 285,401 |
$ 262,799 |
||||||||
|
Operating Income |
$ 38,662 |
$ 38,441 |
$ 171,863 |
$ 160,762 |
||||||||
|
Employee termination benefits |
3,619 |
1,233 |
4,444 |
1,730 |
||||||||
|
Hotel operations |
(310) |
(188) |
(890) |
(845) |
||||||||
|
$ 41,971 |
$ 39,486 |
$ 175,417 |
$ 161,647 |
|||||||||
|
Adjusted Franchising Margins |
56.8% |
59.0% |
61.5% |
61.5% |
||||||||
|
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS |
||||||||||||
|
(dollar amounts in thousands) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
|
2011 |
2010 |
2011 |
2010 |
|||||||||
|
Selling, general and administrative expense |
$ 33,463 |
$ 26,744 |
$ 106,404 |
$ 94,540 |
||||||||
|
Employee termination benefits |
(3,619) |
(1,233) |
(4,444) |
(1,730) |
||||||||
|
Adjusted Selling, General and Administrative Expense |
$ 29,844 |
$ 25,511 |
$ 101,960 |
$ 92,810 |
||||||||
|
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) |
||||||||||||
|
(In thousands, except per share amounts) |
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
|
2011 |
2010 |
2011 |
2010 |
|||||||||
|
Net Income |
$ 24,786 |
$ 24,143 |
$ 110,396 |
$ 107,441 |
||||||||
|
Adjustments: |
||||||||||||
|
Employee termination benefits |
2,291 |
772 |
2,813 |
1,083 |
||||||||
|
Loss on land held for sale |
- |
- |
1,119 |
- |
||||||||
|
Adjusted Net Income |
$ 27,077 |
$ 24,915 |
$ 114,328 |
$ 108,524 |
||||||||
|
Weighted average shares outstanding-diluted |
58,608 |
59,706 |
59,525 |
59,656 |
||||||||
|
Diluted Earnings Per Share |
$ 0.42 |
$ 0.40 |
$ 1.85 |
$ 1.80 |
||||||||
|
Adjustments: |
||||||||||||
|
Employee termination benefits |
0.04 |
0.02 |
0.05 |
0.02 |
||||||||
|
Loss on land held for sale |
- |
- |
0.02 |
- |
||||||||
|
Adjusted Diluted Earnings Per Share (EPS) |
$ 0.46 |
$ 0.42 |
$ 1.92 |
$ 1.82 |
||||||||
|
Adjusted EBITDA Reconciliation |
||||||||||||
|
(in millions) |
||||||||||||
|
Q4 2011 Actuals |
Q4 2010 Actuals |
Year Ended December |
Year Ended December |
Full-Year 2012 |
||||||||
|
Operating Income (per GAAP) |
$ 38.7 |
$ 38.4 |
$ 171.9 |
$ 160.8 |
$190 - $194 |
|||||||
|
Employee termination benefits |
3.6 |
1.2 |
4.4 |
1.7 |
- |
|||||||
|
Depreciation and amortization |
2.0 |
1.9 |
8.0 |
8.3 |
9 |
|||||||
|
Adjusted Earnings before interest, taxes, depreciation & amortization (non-GAAP) |
$ 44.3 |
$ 41.5 |
$ 184.3 |
$ 170.8 |
$199 - $203 |
|||||||
SOURCE Choice Hotels International, Inc.
CONTACT: David White, Senior Vice President, Chief Financial Officer & Treasurer, +1-301-592-5117, or Heather Soule, Communications Director, +1-301-628-4361
Web Site: http://www.choicehotels.com
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