SILVER SPRING, Md., Aug. 1, 2011 /PRNewswire/ -- Choice Hotels International, Inc., (NYSE: CHH) today reported the following highlights for second quarter 2011:
-- Diluted earnings per share ("EPS") for second quarter 2011 were $0.46
compared to $0.45 for the same period of the prior year.
-- Excluding special items, adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA") were $47.3 million for the
three months ended June 30, 2011, compared to $45.7 million for the same
period of 2010. Operating income increased 3% from $43.6 million for the
three months ended June 30, 2010 to $45.1 million for the same period of
the current year.
-- Franchising revenues increased 7% from $68.4 million for the three
months ended June 30, 2010 to $73.4 million for the same period of 2011.
Total revenues for the three months ended June 30, 2011 increased 10% to
$165.3 million compared to the same period of 2010.
-- Worldwide unit growth increased 0.7 percent from June 30, 2010 comprised
of domestic and international unit growth of 0.5 percent and 1.6
percent, respectively.
-- Domestic system-wide revenue per available room ("RevPAR") increased
6.6% for the second quarter of 2011 compared to the same period of 2010.
-- The effective royalty rate increased 4 basis points to 4.33% for the
three months ended June 30, 2011 compared to 4.29% for the same period
of the prior year.
-- The company executed 69 new domestic hotel franchise contracts for the
three months ended June 30, 2011, an increase of 11% compared to the 62
contracts executed in the same period of the prior year.
-- The number of domestic hotels under construction, awaiting conversion or
approved for development declined 23% from June 30, 2010 to 451 hotels
representing 37,892 rooms; the worldwide pipeline declined 19% from June
30, 2010 to 554 hotels representing 46,612 rooms.
"During the second quarter, we continued to see strong gains in RevPAR domestically across every brand in the Choice family thanks to a combination of increases in both occupancy and rate," said Stephen P. Joyce, president and chief executive officer. "We were also pleased to see a robust increase in domestic franchise development agreements for our conversion brands. In particular, the development community continues to warmly receive our Ascend Collection membership program, with units online increasing more than 35% over the past year. We are also excited with the recent addition of the Collection's largest property, the 431-room Xona Resorts Suites hotel in Scottsdale, Arizona which will further strengthen the portfolio."
Special Items
During the three and six months ended June 30, 2011, the company recorded employee termination benefits charges of approximately $0.3 million and $0.4 million, respectively. In addition, during the six months ended June 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 six months ended June 30, 2011 but did not have an effect on the reported diluted EPS for the three months ended June 30, 2011.
During the three and six months ended June 30, 2010, the company recorded employee termination benefits charges (reversals) of approximately ($0.1) million and $0.2 million, respectively. These amounts did not have an effect on the reported diluted EPS for the periods reported.
Outlook for 2011
The company's third quarter 2011 diluted EPS is expected to be $0.59. The company expects full-year 2011 adjusted diluted EPS to be between $1.75 and $1.77. Adjusted EBITDA for full-year 2011 are expected to be between $178 million and $180 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 5% for the third quarter of
2011 and increase approximately 5% for full-year 2011;
-- The effective royalty rate is expected to increase 1 basis points for
full-year 2011;
-- The growth rate for selling, general and administrative expenses for the
second half of 2011 is expected to moderate, from the growth rate in the
first half of 2011, to a mid-single digit percentage increase compared
to the second half of 2010;
-- All figures assume the existing share count and an effective tax rate of
34.5% and 33.5% for the third quarter and full-year 2011, respectively;
-- Adjusted EBITDA for the full year 2011 excludes $0.4 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 six months ended June 30, 2011 the company paid $21.9 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 six months ended June 30, 2011, the company did not purchase shares of its common stock under the share repurchase program but still has authorization to purchase up to an additional 3.6 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 43.2 million shares of its common stock for a total cost of $1 billion through June 30, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 76.2 million shares through June 30, 2011 under the share repurchase program at an average price of $13.35 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, August 2, 2011 at 10:00 a.m. EDT to discuss the company's second quarter 2011 results. The dial-in number to listen to the call is 1-800-599-9816, and the access code is 24713398. International callers should dial 1-617-847-8705 and enter the access code 24713398. 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 1:00 p.m. EDT on Tuesday, August 2, 2011 through Friday, September 2, 2011 by calling 1-888-286-8010 and entering access code 84948188. The international dial-in number for the replay is 1-617-801-6888, access code 84948188. 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 June 30, 2011, more than 450 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 37,000 rooms, and approximately 100 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 six months ended June 30, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the six months ended June 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 June 30,
---------------------------
Variance
2011 2010 $ %
---- ---- --- ---
(In thousands,
except per
share amounts)
REVENUES:
Royalty
fees $62,301 $57,443 $4,858 8%
Initial
franchise and
relicensing
fees 2,585 2,655 (70) (3%)
Procurement
services 6,557 6,611 (54) (1%)
Marketing and
reservation 90,832 80,389 10,443 13%
Hotel
operations 1,073 1,109 (36) (3%)
Other 1,953 1,641 312 19%
----- ----- --- ---
Total
revenues 165,301 149,848 15,453 10%
OPERATING
EXPENSES:
Selling, general
and
administrative 26,539 22,824 3,715 16%
Depreciation and
amortization 1,948 2,220 (272) (12%)
Marketing and
reservation 90,832 80,389 10,443 13%
Hotel
operations 860 808 52 6%
--- --- --- ---
Total operating
expenses 120,179 106,241 13,938 13%
Operating
income 45,122 43,607 1,515 3%
OTHER INCOME AND
EXPENSES, NET:
Interest
expense 3,267 675 2,592 384%
Interest
income (221) (135) (86) 64%
Other (gains)
and losses (38) 1,238 (1,276) (103%)
Equity in net
income of
affiliates - (195) 195 (100%)
--- ---- --- ------
Total other
income and
expenses, net 3,008 1,583 1,425 90%
----- ----- ----- ---
Income before
income taxes 42,114 42,024 90 0%
Income
taxes 14,536 15,013 (477) (3%)
------ ------ ---- ----
Net
income $27,578 $27,011 $567 2%
======= ======= ==== ===
Basic earnings
per share $0.46 $0.45 $0.01 2%
===== ===== ===== ===
Diluted earnings
per share $0.46 $0.45 $0.01 2%
===== ===== ===== ===
Six Months Ended June 30,
-------------------------
Variance
2011 2010 $ %
---- ---- --- ---
(In thousands,
except per
share amounts)
REVENUES:
Royalty
fees $106,541 $98,464 $8,077 8%
Initial
franchise and
relicensing
fees 5,199 4,567 632 14%
Procurement
services 9,722 9,856 (134) (1%)
Marketing and
reservation 153,799 139,229 14,570 10%
Hotel
operations 1,937 1,976 (39) (2%)
Other 3,384 3,177 207 7%
----- ----- --- ---
Total
revenues 280,582 257,269 23,313 9%
OPERATING
EXPENSES:
Selling, general
and
administrative 50,386 44,640 5,746 13%
Depreciation and
amortization 3,903 4,392 (489) (11%)
Marketing and
reservation 153,799 139,229 14,570 10%
Hotel
operations 1,693 1,564 129 8%
----- ----- --- ---
Total operating
expenses 209,781 189,825 19,956 11%
Operating
income 70,801 67,444 3,357 5%
OTHER INCOME AND
EXPENSES, NET:
Interest
expense 6,491 1,296 5,195 401%
Interest
income (431) (195) (236) 121%
Other (gains)
and losses 1,005 221 784 355%
Equity in net
income of
affiliates (301) (548) 247 (45%)
---- ---- --- -----
Total other
income and
expenses, net 6,764 774 5,990 774%
----- --- ----- ---
Income before
income taxes 64,037 66,670 (2,633) (4%)
Income
taxes 20,729 23,866 (3,137) (13%)
------ ------ ------
Net
income $43,308 $42,804 $504 1%
======= ======= ==== ===
Basic earnings
per share $0.72 $0.72 $- 0%
===== ===== === ===
Diluted earnings
per share $0.72 $0.72 $- 0%
===== ===== === ===
Choice Hotels International, Inc. Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share
amounts) June 30, December 31,
2011 2010
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $90,961 $91,259
Accounts receivable, net 58,044 47,638
Deferred income taxes 429 429
Other current assets 22,030 24,256
------ ------
Total current assets 171,464 163,582
Fixed assets and intangibles, net 139,066 142,528
Receivable --marketing and
reservation fees 60,475 42,507
Investments, employee benefit plans,
at fair value 24,972 23,365
Other assets 45,328 39,740
------ ------
Total assets $441,305 $411,722
-------- --------
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses $83,752 $88,986
Deferred revenue 60,898 67,322
Deferred compensation & retirement
plan obligations 2,693 2,552
Current portion of long-term debt 516 420
Revolving credit facility - 200
Income taxes payable 17,142 5,778
------ -----
Total current liabilities 165,001 165,258
Long-term debt 251,981 251,554
Deferred compensation & retirement
plan obligations 34,969 35,707
Other liabilities 17,296 17,274
------ ------
Total liabilities 469,247 469,793
Common stock, $0.01 par value 598 596
Additional paid-in-capital 95,083 92,774
Accumulated other comprehensive loss (5,768) (7,192)
Treasury stock, at cost (867,249) (872,306)
Retained earnings 749,394 728,057
------- -------
Total shareholders' deficit (27,942) (58,071)
Total liabilities and
shareholders' deficit $441,305 $411,722
-------- --------
Choice Hotels International, Inc. Exhibit 3
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands) Six Months Ended June 30,
-------------------------
2011 2010
---- ----
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $43,308 $42,804
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 3,903 4,392
Provision for bad debts 1,340 1,637
Non-cash stock compensation and
other charges 7,436 5,297
Non-cash interest and other loss 22 307
Dividends received from equity
method investments 159 148
Equity in net income of
affiliates (301) (548)
Changes in assets and
liabilities, net of
acquisitions:
Receivables (11,058) (10,061)
Receivable -marketing and
reservation fees, net (11,387) (17,996)
Accounts payable 6,026 9,043
Accrued expenses (11,004) (6,601)
Income taxes payable/receivable 11,404 11,492
Deferred income taxes 40 (55)
Deferred revenue (6,463) 5,475
Other assets (750) (4,307)
Other liabilities (624) 577
---- ---
NET CASH PROVIDED BY OPERATING
ACTIVITIES 32,051 41,604
------ ------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Investment in property and
equipment (5,110) (12,249)
Equity method investments (1,600) -
Acquisitions, net of cash
acquired - (466)
Purchases of investments,
employee benefit plans (1,139) (1,204)
Proceeds from sales of
investments, employee benefit
plans 347 836
Issuance of notes receivable (2,651) (8,008)
Collections of notes receivable 13 37
Other items, net (192) (361)
---- ----
NET CASH USED IN INVESTING
ACTIVITIES (10,332) (21,415)
------- -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net borrowings (repayments)
pursuant to revolving credit
facilities (200) 13,400
Repayments of long-term debt (13) -
Proceeds from the issuance of
long-term debt 75 -
Purchase of treasury stock (2,527) (9,242)
Dividends paid (21,922) (21,924)
Excess tax benefits from stock-
based compensation 1,061 12
Debt issuance costs (2,356) -
Proceeds from exercise of stock
options 3,132 1,315
----- -----
NET CASH USED IN FINANCING
ACTIVITIES (22,750) (16,439)
------- -------
Net change in cash and cash
equivalents (1,031) 3,750
Effect of foreign exchange rate
changes on cash and cash
equivalents 733 (694)
Cash and cash equivalents at
beginning of period 91,259 67,870
------ ------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $90,961 $70,926
======= =======
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
For the Six Months Ended June
30, 2011*
-----------------------------
Average
Daily
Rate Occupancy RevPAR
---- --------- ------
Comfort Inn $75.27 51.1% $38.47
Comfort Suites 81.82 53.7% 43.96
Sleep 67.81 48.7% 33.03
Quality 64.47 44.7% 28.81
Clarion 70.89 42.4% 30.07
Econo Lodge 51.60 42.4% 21.89
Rodeway 47.78 43.2% 20.66
MainStay 64.06 61.8% 39.57
Suburban 39.82 65.3% 25.99
Ascend
Collection 106.96 55.3% 59.19
------ ---- -----
Total $68.57 48.2% $33.02
====== ==== ======
For the Six Months Ended June
30, 2010*
-----------------------------
Average
Daily
Rate Occupancy RevPAR
---- --------- ------
Comfort Inn $73.44 49.5% $36.33
Comfort Suites 81.05 50.5% 40.92
Sleep 66.93 47.3% 31.68
Quality 64.10 42.6% 27.31
Clarion 72.34 39.1% 28.27
Econo Lodge 51.21 40.7% 20.87
Rodeway 47.06 40.7% 19.14
MainStay 64.20 59.3% 38.06
Suburban 38.47 62.4% 24.01
Ascend
Collection 103.97 50.1% 52.09
------ ---- -----
Total $67.57 46.1% $31.12
====== ==== ======
Change
------
Average
Daily
Rate Occupancy RevPAR
---- --------- ------
Comfort Inn 2.5% 160 bps 5.9%
Comfort Suites 1.0% 320 bps 7.4%
Sleep 1.3% 140 bps 4.3%
Quality 0.6% 210 bps 5.5%
Clarion (2.0%) 330 bps 6.4%
Econo Lodge 0.8% 170 bps 4.9%
Rodeway 1.5% 250 bps 7.9%
MainStay (0.2%) 250 bps 4.0%
Suburban 3.5% 290 bps 8.2%
Ascend
Collection 2.9% 520 bps 13.6%
--- --- --- ----
Total 1.5% 210 bps 6.1%
=== === ===
* Operating statistics represent hotel operations from December
through May
For the Three Months Ended June 30,
2011*
-----------------------------------
Average Daily
Rate Occupancy RevPAR
---- --------- ------
Comfort Inn $77.54 57.7% $44.73
Comfort Suites 83.89 60.3% 50.55
Sleep 69.95 55.0% 38.45
Quality 66.58 50.4% 33.58
Clarion 73.14 47.9% 35.01
Econo Lodge 53.10 47.4% 25.14
Rodeway 49.34 47.7% 23.55
MainStay 66.31 69.2% 45.87
Suburban 41.13 69.7% 28.68
Ascend Collection 113.44 60.4% 68.50
------ ---- -----
Total $70.72 54.1% $38.22
====== ==== ======
For the Three Months Ended June 30,
2010*
-----------------------------------
Average Daily
Rate Occupancy RevPAR
---- --------- ------
Comfort Inn $75.22 55.9% $42.04
Comfort Suites 82.40 56.9% 46.88
Sleep 68.54 53.3% 36.51
Quality 65.93 48.0% 31.62
Clarion 74.37 44.2% 32.85
Econo Lodge 52.44 45.7% 23.95
Rodeway 48.32 44.8% 21.63
MainStay 65.04 66.3% 43.09
Suburban 39.51 65.8% 25.98
Ascend Collection 108.34 57.0% 61.70
------ ---- -----
Total $69.31 51.8% $35.86
====== ==== ======
Change
------
Average
Daily
Rate Occupancy RevPAR
---- --------- ------
Comfort Inn 3.1% 180 bps 6.4%
Comfort Suites 1.8% 340 bps 7.8%
Sleep 2.1% 170 bps 5.3%
Quality 1.0% 240 bps 6.2%
Clarion (1.7%) 370 bps 6.6%
Econo Lodge 1.3% 170 bps 5.0%
Rodeway 2.1% 290 bps 8.9%
MainStay 2.0% 290 bps 6.5%
Suburban 4.1% 390 bps 10.4%
Ascend Collection 4.7% 340 bps 11.0%
--- --- --- ----
Total 2.0% 230 bps 6.6%
=== === === ===
* Operating statistics represent hotel operations from March through May
For the Quarter Ended For the Six Months Ended
--------------------- ------------------------
6/30/2011 6/30/2010 6/30/2011 6/30/2010
System-wide effective
royalty rate 4.33% 4.29% 4.34% 4.30%
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
June 30, 2011 June 30, 2010
------------- -------------
Hotels Rooms Hotels Rooms
------ ----- ------ -----
Comfort Inn 1,416 110,736 1,446 113,677
Comfort Suites 613 47,441 621 48,200
Sleep 394 28,625 392 28,586
Quality 1,027 89,571 984 88,453
Clarion 193 28,335 175 25,188
Econo Lodge 778 48,197 785 48,543
Rodeway 377 20,506 381 21,473
MainStay 39 3,007 36 2,798
Suburban 61 7,255 63 7,608
Ascend Collection 44 3,392 32 2,646
Cambria Suites 19 2,215 21 2,453
--- ----- --- -----
Domestic
Franchises 4,961 389,280 4,936 389,625
International
Franchises 1,156 102,086 1,138 100,858
----- ------- ----- -------
Total Franchises 6,117 491,366 6,074 490,483
===== ======= ===== =======
Variance
--------
Hotels Rooms % %
------ ----- --- ---
Comfort Inn (30) (2,941) (2.1%) (2.6%)
Comfort Suites (8) (759) (1.3%) (1.6%)
Sleep 2 39 0.5% 0.1%
Quality 43 1,118 4.4% 1.3%
Clarion 18 3,147 10.3% 12.5%
Econo Lodge (7) (346) (0.9%) (0.7%)
Rodeway (4) (967) (1.0%) (4.5%)
MainStay 3 209 8.3% 7.5%
Suburban (2) (353) (3.2%) (4.6%)
Ascend Collection 12 746 37.5% 28.2%
Cambria Suites (2) (238) (9.5%) (9.7%)
--- ---- ------ ------
Domestic
Franchises 25 (345) 0.5% (0.1%)
International
Franchises 18 1,228 1.6% 1.2%
--- ----- --- ---
Total Franchises 43 883 0.7% 0.2%
=== === === ===
Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
For the Six Months Ended June
30, 2011
-----------------------------
New
Construction Conversion Total
------------ ---------- -----
Comfort Inn 5 18 23
Comfort Suites 1 4 5
Sleep 3 1 4
Quality - 35 35
Clarion - 8 8
Econo Lodge - 18 18
Rodeway - 18 18
MainStay 1 3 4
Suburban 2 1 3
Ascend Collection - 5 5
Cambria Suites 2 - 2
--- --- ---
Total Domestic
System 14 111 125
=== === ===
For the Three Months Ended
June 30, 2011
---------------------------
New
Construction Conversion Total
------------ ---------- -----
Comfort Inn 3 11 14
Comfort Suites 1 2 3
Sleep 1 1 2
Quality - 11 11
Clarion - 3 3
Econo Lodge - 12 12
Rodeway - 13 13
MainStay - 3 3
Suburban 2 1 3
Ascend Collection - 4 4
Cambria Suites 1 - 1
--- --- ---
Total Domestic
System 8 61 69
=== === ===
For the Six Months Ended June
30, 2010
-----------------------------
New
Construction Conversion Total
------------ ---------- -----
Comfort Inn 3 13 16
Comfort Suites 8 1 9
Sleep 2 - 2
Quality 1 31 32
Clarion - 6 6
Econo Lodge - 22 22
Rodeway 1 19 20
MainStay 3 - 3
Suburban 1 - 1
Ascend Collection - 3 3
Cambria Suites 3 - 3
--- --- ---
Total Domestic
System 22 95 117
=== === ===
For the Three Months Ended
June 30, 2010
---------------------------
New
Construction Conversion Total
------------ ---------- -----
Comfort Inn 2 5 7
Comfort Suites 6 1 7
Sleep - - -
Quality - 20 20
Clarion - 3 3
Econo Lodge - 12 12
Rodeway - 8 8
MainStay 1 - 1
Suburban - - -
Ascend Collection - 1 1
Cambria Suites 3 - 3
--- --- ---
Total Domestic
System 12 50 62
=== === ===
% Change
--------
New
Construction Conversion Total
------------ ---------- -----
Comfort Inn 67% 38% 44%
Comfort Suites (88%) 300% (44%)
Sleep 50% NM 100%
Quality (100%) 13% 9%
Clarion NM 33% 33%
Econo Lodge NM (18%) (18%)
Rodeway (100%) (5%) (10%)
MainStay (67%) NM 33%
Suburban 100% NM 200%
Ascend Collection NM 67% 67%
Cambria Suites (33%) NM (33%)
----- --- -----
Total Domestic
System (36%) 17% 7%
===== === ===
% Change
--------
New
Construction Conversion Total
------------ ---------- -----
Comfort Inn 50% 120% 100%
Comfort Suites (83%) 100% (57%)
Sleep NM NM NM
Quality NM (45%) (45%)
Clarion NM 0% 0%
Econo Lodge NM 0% 0%
Rodeway NM 63% 63%
MainStay (100%) NM 200%
Suburban NM NM NM
Ascend Collection NM 300% 300%
Cambria Suites (67%) NM (67%)
----- --- -----
Total Domestic
System (33%) 22% 11%
===== === ===
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.
June 30, 2011
Units
-----
New
Conversion Construction Total
---------- ------------- -----
Comfort Inn 27 50 77
Comfort Suites 3 108 111
Sleep Inn - 62 62
Quality 25 5 30
Clarion 16 2 18
Econo Lodge 34 1 35
Rodeway 15 1 16
MainStay 4 37 41
Suburban - 22 22
Ascend
Collection 5 3 8
Cambria Suites - 31 31
--- --- ---
129 322 451
=== === ===
June 30, 2010
Units
-----
New
Conversion Construction Total
---------- ------------- -----
Comfort Inn 33 69 102
Comfort Suites 1 136 137
Sleep Inn 1 101 102
Quality 41 11 52
Clarion 15 5 20
Econo Lodge 35 2 37
Rodeway 26 3 29
MainStay - 39 39
Suburban - 26 26
Ascend
Collection 3 4 7
Cambria Suites - 35 35
--- --- ---
155 431 586
=== === ===
Variance
--------
New
Conversion Construction Total
---------- ------------- -----
Units % Units % Units %
----- --- ----- --- ----- ---
Comfort Inn (6) (18%) (19) (28%) (25) (25%)
Comfort Suites 2 200% (28) (21%) (26) (19%)
Sleep Inn (1) (100%) (39) (39%) (40) (39%)
Quality (16) (39%) (6) (55%) (22) (42%)
Clarion 1 7% (3) (60%) (2) (10%)
Econo Lodge (1) (3%) (1) (50%) (2) (5%)
Rodeway (11) (42%) (2) (67%) (13) (45%)
MainStay 4 NM (2) (5%) 2 5%
Suburban - NM (4) (15%) (4) (15%)
Ascend
Collection 2 67% (1) (25%) 1 14%
Cambria Suites - NM (4) (11%) (4) (11%)
--- --- --- ----- --- -----
(26) (17%) (109) (25%) (135) (23%)
=== ===== ==== ===== ==== =====
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 June 30,
---------------------------
2011 2010
---- ----
Franchising Revenues:
Total Revenues $165,301 $149,848
Adjustments:
Marketing and reservation
revenues (90,832) (80,389)
Hotel operations (1,073) (1,109)
Franchising Revenues $73,396 $68,350
------- -------
Franchising Margins:
Operating Margin:
Total Revenues $165,301 $149,848
Operating Income $45,122 $43,607
Operating Margin 27.3% 29.1%
---- ----
Adjusted Franchising Margin:
Franchising Revenues $73,396 $68,350
Operating Income $45,122 $43,607
Employee termination benefits 347 (119)
Hotel operations (213) (301)
$45,256 $43,187
------- -------
Adjusted Franchising Margins 61.7% 63.2%
---- ----
CALCULATION OF ADJUSTED
SELLING, GENERAL AND
ADMINISTRATIVE COSTS
(dollar amounts in thousands) Three Months Ended June 30,
---------------------------
2011 2010
---- ----
Selling, general and
administrative costs $26,539 $22,824
Employee termination benefits (347) 119
Adjusted Selling, General and
Administrative Costs $26,192 $22,943
======= =======
CALCULATION OF ADJUSTED NET
INCOME AND ADJUSTED DILUTED
EARNINGS PER SHARE (EPS)
(In thousands, except per share
amounts) Three Months Ended June 30,
---------------------------
2011 2010
---- ----
Net Income $27,578 $27,011
Adjustments:
Employee termination benefits 218 (74)
Loss on land held for sale - -
--- ---
Adjusted Net Income $27,796 $26,937
------- -------
Weighted average shares
outstanding-diluted 59,918 59,676
Diluted Earnings Per Share $0.46 $0.45
Adjustments:
Employee termination benefits - -
Loss on land held for sale - -
--- ---
Adjusted Diluted Earnings Per
Share (EPS) $0.46 $0.45
----- -----
(dollar amounts in thousands) Six Months Ended June 30,
-------------------------
2011 2010
---- ----
Franchising Revenues:
Total Revenues $280,582 $257,269
Adjustments:
Marketing and reservation
revenues (153,799) (139,229)
Hotel operations (1,937) (1,976)
Franchising Revenues $124,846 $116,064
-------- --------
Franchising Margins:
Operating Margin:
Total Revenues $280,582 $257,269
Operating Income $70,801 $67,444
Operating Margin 25.2% 26.2%
---- ----
Adjusted Franchising Margin:
Franchising Revenues $124,846 $116,064
Operating Income $70,801 $67,444
Employee termination benefits 417 233
Hotel operations (244) (412)
$70,974 $67,265
------- -------
Adjusted Franchising Margins 56.8% 58.0%
---- ----
CALCULATION OF ADJUSTED
SELLING, GENERAL AND
ADMINISTRATIVE COSTS
(dollar amounts in thousands) Six Months Ended June 30,
-------------------------
2011 2010
---- ----
Selling, general and
administrative costs $50,386 $44,640
Employee termination benefits (417) (233)
Adjusted Selling, General and
Administrative Costs $49,969 $44,407
======= =======
CALCULATION OF ADJUSTED NET
INCOME AND ADJUSTED DILUTED
EARNINGS PER SHARE (EPS)
(In thousands, except per share
amounts) Six Months Ended June 30,
-------------------------
2011 2010
---- ----
Net Income $43,308 $42,804
Adjustments:
Employee termination benefits 262 146
Loss on land held for sale 1,111 -
----- ---
Adjusted Net Income $44,681 $42,950
------- -------
Weighted average shares
outstanding-diluted 59,854 59,639
Diluted Earnings Per Share $0.72 $0.72
Adjustments:
Employee termination benefits 0.01 -
Loss on land held for sale 0.02 -
---- ---
Adjusted Diluted Earnings Per
Share (EPS) $0.75 $0.72
----- -----
Adjusted EBITDA Reconciliation
(in millions)
Q2 2011 Actuals Q2 2010 Actuals
--------------- ---------------
Operating Income (per GAAP) $45.1 $43.6
Employee termination
benefits 0.3 (0.1)
Depreciation and
amortization 1.9 2.2
Adjusted Earnings before
interest, taxes,
depreciation & $47.3 $45.7
amortization (non-GAAP) ===== =====
Six Months Ended Six Months Ended Full-Year
---------------- ---------------- ---------
June 30, 2011 June 30, 2010 2011 Outlook
------------- ------------- ------------
Actuals Actuals
------- -------
Operating Income
(per GAAP) $70.8 $67.4 $169.1-$171.1
Employee termination
benefits 0.4 0.2 0.4
Depreciation and
amortization 3.9 4.4 8.5
---
Adjusted Earnings
before interest,
taxes, depreciation
& $75.1 $72.0 $178-$180
amortization (non-
GAAP) ===== ===== =========
SOURCE Choice Hotels International, Inc.
SOURCE: Choice Hotels International, Inc.
PR Newswire
SILVER SPRING, Md., Aug. 1, 2011
SILVER SPRING, Md., Aug. 1, 2011 /PRNewswire/ -- Choice Hotels International, Inc., (NYSE: CHH) today reported the following highlights for second quarter 2011:
"During the second quarter, we continued to see strong gains in RevPAR domestically across every brand in the Choice family thanks to a combination of increases in both occupancy and rate," said Stephen P. Joyce, president and chief executive officer. "We were also pleased to see a robust increase in domestic franchise development agreements for our conversion brands. In particular, the development community continues to warmly receive our Ascend Collection membership program, with units online increasing more than 35% over the past year. We are also excited with the recent addition of the Collection's largest property, the 431-room Xona Resorts Suites hotel in Scottsdale, Arizona which will further strengthen the portfolio."
Special Items
During the three and six months ended June 30, 2011, the company recorded employee termination benefits charges of approximately $0.3 million and $0.4 million, respectively. In addition, during the six months ended June 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 six months ended June 30, 2011 but did not have an effect on the reported diluted EPS for the three months ended June 30, 2011.
During the three and six months ended June 30, 2010, the company recorded employee termination benefits charges (reversals) of approximately ($0.1) million and $0.2 million, respectively. These amounts did not have an effect on the reported diluted EPS for the periods reported.
Outlook for 2011
The company's third quarter 2011 diluted EPS is expected to be $0.59. The company expects full-year 2011 adjusted diluted EPS to be between $1.75 and $1.77. Adjusted EBITDA for full-year 2011 are expected to be between $178 million and $180 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 six months ended June 30, 2011 the company paid $21.9 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 six months ended June 30, 2011, the company did not purchase shares of its common stock under the share repurchase program but still has authorization to purchase up to an additional 3.6 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 43.2 million shares of its common stock for a total cost of $1 billion through June 30, 2011. Considering the effect of a two-for-one stock split in October 2005, the company had repurchased 76.2 million shares through June 30, 2011 under the share repurchase program at an average price of $13.35 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, August 2, 2011 at 10:00 a.m. EDT to discuss the company's second quarter 2011 results. The dial-in number to listen to the call is 1-800-599-9816, and the access code is 24713398. International callers should dial 1-617-847-8705 and enter the access code 24713398. 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 1:00 p.m. EDT on Tuesday, August 2, 2011 through Friday, September 2, 2011 by calling 1-888-286-8010 and entering access code 84948188. The international dial-in number for the replay is 1-617-801-6888, access code 84948188. 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 June 30, 2011, more than 450 hotels were under construction, awaiting conversion or approved for development in the United States, representing more than 37,000 rooms, and approximately 100 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 six months ended June 30, 2011 and 2010 as well as a reduction in the carrying amount of land held for sale during the six months ended June 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 June 30, |
Six Months Ended June 30, |
|||||||||||||||||||
|
Variance |
Variance |
|||||||||||||||||||
|
2011 |
2010 |
$ |
% |
2011 |
2010 |
$ |
% |
|||||||||||||
|
(In thousands, except per share amounts) |
||||||||||||||||||||
|
REVENUES: |
||||||||||||||||||||
|
Royalty fees |
$ 62,301 |
$ 57,443 |
$ 4,858 |
8% |
$ 106,541 |
$ 98,464 |
$ 8,077 |
8% |
||||||||||||
|
Initial franchise and relicensing fees |
2,585 |
2,655 |
(70) |
(3%) |
5,199 |
4,567 |
632 |
14% |
||||||||||||
|
Procurement services |
6,557 |
6,611 |
(54) |
(1%) |
9,722 |
9,856 |
(134) |
(1%) |
||||||||||||
|
Marketing and reservation |
90,832 |
80,389 |
10,443 |
13% |
153,799 |
139,229 |
14,570 |
10% |
||||||||||||
|
Hotel operations |
1,073 |
1,109 |
(36) |
(3%) |
1,937 |
1,976 |
(39) |
(2%) |
||||||||||||
|
Other |
1,953 |
1,641 |
312 |
19% |
3,384 |
3,177 |
207 |
7% |
||||||||||||
|
Total revenues |
165,301 |
149,848 |
15,453 |
10% |
280,582 |
257,269 |
23,313 |
9% |
||||||||||||
|
OPERATING EXPENSES: |
||||||||||||||||||||
|
Selling, general and administrative |
26,539 |
22,824 |
3,715 |
16% |
50,386 |
44,640 |
5,746 |
13% |
||||||||||||
|
Depreciation and amortization |
1,948 |
2,220 |
(272) |
(12%) |
3,903 |
4,392 |
(489) |
(11%) |
||||||||||||
|
Marketing and reservation |
90,832 |
80,389 |
10,443 |
13% |
153,799 |
139,229 |
14,570 |
10% |
||||||||||||
|
Hotel operations |
860 |
808 |
52 |
6% |
1,693 |
1,564 |
129 |
8% |
||||||||||||
|
Total operating expenses |
120,179 |
106,241 |
13,938 |
13% |
209,781 |
189,825 |
19,956 |
11% |
||||||||||||
|
Operating income |
45,122 |
43,607 |
1,515 |
3% |
70,801 |
67,444 |
3,357 |
5% |
||||||||||||
|
OTHER INCOME AND EXPENSES, NET: |
||||||||||||||||||||
|
Interest expense |
3,267 |
675 |
2,592 |
384% |
6,491 |
1,296 |
5,195 |
401% |
||||||||||||
|
Interest income |
(221) |
(135) |
(86) |
64% |
(431) |
(195) |
(236) |
121% |
||||||||||||
|
Other (gains) and losses |
(38) |
1,238 |
(1,276) |
(103%) |
1,005 |
221 |
784 |
355% |
||||||||||||
|
Equity in net income of affiliates |
- |
(195) |
195 |
(100%) |
(301) |
(548) |
247 |
(45%) |
||||||||||||
|
Total other income and expenses, net |
3,008 |
1,583 |
1,425 |
90% |
6,764 |
774 |
5,990 |
774% |
||||||||||||
|
Income before income taxes |
42,114 |
42,024 |
90 |
0% |
64,037 |
66,670 |
(2,633) |
(4%) |
||||||||||||
|
Income taxes |
14,536 |
15,013 |
(477) |
(3%) |
20,729 |
23,866 |
(3,137) |
(13%) |
||||||||||||
|
Net income |
$ 27,578 |
$ 27,011 |
$ 567 |
2% |
$ 43,308 |
$ 42,804 |
$ 504 |
1% |
||||||||||||
|
Basic earnings per share |
$ 0.46 |
$ 0.45 |
$ 0.01 |
2% |
$ 0.72 |
$ 0.72 |
$ - |
0% |
||||||||||||
|
Diluted earnings per share |
$ 0.46 |
$ 0.45 |
$ 0.01 |
2% |
$ 0.72 |
$ 0.72 |
$ - |
0% |
||||||||||||
|
Choice Hotels International, Inc. |
Exhibit 2 |
|||||||
|
Consolidated Balance Sheets |
||||||||
|
(In thousands, except per share amounts) |
June 30, |
December 31, |
||||||
|
2011 |
2010 |
|||||||
|
(Unaudited) |
||||||||
|
ASSETS |
||||||||
|
Cash and cash equivalents |
$ 90,961 |
$ 91,259 |
||||||
|
Accounts receivable, net |
58,044 |
47,638 |
||||||
|
Deferred income taxes |
429 |
429 |
||||||
|
Other current assets |
22,030 |
24,256 |
||||||
|
Total current assets |
171,464 |
163,582 |
||||||
|
Fixed assets and intangibles, net |
139,066 |
142,528 |
||||||
|
Receivable -- marketing and reservation fees |
60,475 |
42,507 |
||||||
|
Investments, employee benefit plans, at fair value |
24,972 |
23,365 |
||||||
|
Other assets |
45,328 |
39,740 |
||||||
|
Total assets |
$ 441,305 |
$ 411,722 |
||||||
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
||||||||
|
Accounts payable and accrued expenses |
$ 83,752 |
$ 88,986 |
||||||
|
Deferred revenue |
60,898 |
67,322 |
||||||
|
Deferred compensation & retirement plan obligations |
2,693 |
2,552 |
||||||
|
Current portion of long-term debt |
516 |
420 |
||||||
|
Revolving credit facility |
- |
200 |
||||||
|
Income taxes payable |
17,142 |
5,778 |
||||||
|
Total current liabilities |
165,001 |
165,258 |
||||||
|
Long-term debt |
251,981 |
251,554 |
||||||
|
Deferred compensation & retirement plan obligations |
34,969 |
35,707 |
||||||
|
Other liabilities |
17,296 |
17,274 |
||||||
|
Total liabilities |
469,247 |
469,793 |
||||||
|
Common stock, $0.01 par value |
598 |
596 |
||||||
|
Additional paid-in-capital |
95,083 |
92,774 |
||||||
|
Accumulated other comprehensive loss |
(5,768) |
(7,192) |
||||||
|
Treasury stock, at cost |
(867,249) |
(872,306) |
||||||
|
Retained earnings |
749,394 |
728,057 |
||||||
|
Total shareholders' deficit |
(27,942) |
(58,071) |
||||||
|
Total liabilities and shareholders' deficit |
$ 441,305 |
$ 411,722 |
||||||
|
Choice Hotels International, Inc. |
Exhibit 3 |
|||
|
Consolidated Statements of Cash Flows |
||||
|
(Unaudited) |
||||
|
(In thousands) |
Six Months Ended June 30, |
|||
|
2011 |
2010 |
|||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||
|
Net income |
$ 43,308 |
$ 42,804 |
||
|
Adjustments to reconcile net income to net cash provided |
||||
|
by operating activities: |
||||
|
Depreciation and amortization |
3,903 |
4,392 |
||
|
Provision for bad debts |
1,340 |
1,637 |
||
|
Non-cash stock compensation and other charges |
7,436 |
5,297 |
||
|
Non-cash interest and other loss |
22 |
307 |
||
|
Dividends received from equity method investments |
159 |
148 |
||
|
Equity in net income of affiliates |
(301) |
(548) |
||
|
Changes in assets and liabilities, net of acquisitions: |
||||
|
Receivables |
(11,058) |
(10,061) |
||
|
Receivable - marketing and reservation fees, net |
(11,387) |
(17,996) |
||
|
Accounts payable |
6,026 |
9,043 |
||
|
Accrued expenses |
(11,004) |
(6,601) |
||
|
Income taxes payable/receivable |
11,404 |
11,492 |
||
|
Deferred income taxes |
40 |
(55) |
||
|
Deferred revenue |
(6,463) |
5,475 |
||
|
Other assets |
(750) |
(4,307) |
||
|
Other liabilities |
(624) |
577 |
||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
32,051 |
41,604 |
||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||
|
Investment in property and equipment |
(5,110) |
(12,249) |
||
|
Equity method investments |
(1,600) |
- |
||
|
Acquisitions, net of cash acquired |
- |
(466) |
||
|
Purchases of investments, employee benefit plans |
(1,139) |
(1,204) |
||
|
Proceeds from sales of investments, employee benefit plans |
347 |
836 |
||
|
Issuance of notes receivable |
(2,651) |
(8,008) |
||
|
Collections of notes receivable |
13 |
37 |
||
|
Other items, net |
(192) |
(361) |
||
|
NET CASH USED IN INVESTING ACTIVITIES |
(10,332) |
(21,415) |
||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||
|
Net borrowings (repayments) pursuant to revolving credit facilities |
(200) |
13,400 |
||
|
Repayments of long-term debt |
(13) |
- |
||
|
Proceeds from the issuance of long-term debt |
75 |
- |
||
|
Purchase of treasury stock |
(2,527) |
(9,242) |
||
|
Dividends paid |
(21,922) |
(21,924) |
||
|
Excess tax benefits from stock-based compensation |
1,061 |
12 |
||
|
Debt issuance costs |
(2,356) |
- |
||
|
Proceeds from exercise of stock options |
3,132 |
1,315 |
||
|
NET CASH USED IN FINANCING ACTIVITIES |
(22,750) |
(16,439) |
||
|
Net change in cash and cash equivalents |
(1,031) |
3,750 |
||
|
Effect of foreign exchange rate changes on cash and cash equivalents |
733 |
(694) |
||
|
Cash and cash equivalents at beginning of period |
91,259 |
67,870 |
||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 90,961 |
$ 70,926 |
||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 4 |
|||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION |
||||||||||||||||||||||
|
DOMESTIC HOTEL SYSTEM |
||||||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||||||
|
For the Six Months Ended June 30, 2011* |
For the Six Months Ended June 30, 2010* |
Change |
||||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
||||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
||||||||||||||
|
Comfort Inn |
$ 75.27 |
51.1% |
$ 38.47 |
$ 73.44 |
49.5% |
$ 36.33 |
2.5% |
160 |
bps |
5.9% |
||||||||||||
|
Comfort Suites |
81.82 |
53.7% |
43.96 |
81.05 |
50.5% |
40.92 |
1.0% |
320 |
bps |
7.4% |
||||||||||||
|
Sleep |
67.81 |
48.7% |
33.03 |
66.93 |
47.3% |
31.68 |
1.3% |
140 |
bps |
4.3% |
||||||||||||
|
Quality |
64.47 |
44.7% |
28.81 |
64.10 |
42.6% |
27.31 |
0.6% |
210 |
bps |
5.5% |
||||||||||||
|
Clarion |
70.89 |
42.4% |
30.07 |
72.34 |
39.1% |
28.27 |
(2.0%) |
330 |
bps |
6.4% |
||||||||||||
|
Econo Lodge |
51.60 |
42.4% |
21.89 |
51.21 |
40.7% |
20.87 |
0.8% |
170 |
bps |
4.9% |
||||||||||||
|
Rodeway |
47.78 |
43.2% |
20.66 |
47.06 |
40.7% |
19.14 |
1.5% |
250 |
bps |
7.9% |
||||||||||||
|
MainStay |
64.06 |
61.8% |
39.57 |
64.20 |
59.3% |
38.06 |
(0.2%) |
250 |
bps |
4.0% |
||||||||||||
|
Suburban |
39.82 |
65.3% |
25.99 |
38.47 |
62.4% |
24.01 |
3.5% |
290 |
bps |
8.2% |
||||||||||||
|
Ascend Collection |
106.96 |
55.3% |
59.19 |
103.97 |
50.1% |
52.09 |
2.9% |
520 |
bps |
13.6% |
||||||||||||
|
Total |
$ 68.57 |
48.2% |
$ 33.02 |
$ 67.57 |
46.1% |
$ 31.12 |
1.5% |
210 |
bps |
6.1% |
||||||||||||
|
* Operating statistics represent hotel operations from December through May |
||||||||||||||||||||||
|
For the Three Months Ended June 30, 2011* |
For the Three Months Ended June 30, 2010* |
Change |
||||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
||||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
||||||||||||||
|
Comfort Inn |
$ 77.54 |
57.7% |
$ 44.73 |
$ 75.22 |
55.9% |
$ 42.04 |
3.1% |
180 |
bps |
6.4% |
||||||||||||
|
Comfort Suites |
83.89 |
60.3% |
50.55 |
82.40 |
56.9% |
46.88 |
1.8% |
340 |
bps |
7.8% |
||||||||||||
|
Sleep |
69.95 |
55.0% |
38.45 |
68.54 |
53.3% |
36.51 |
2.1% |
170 |
bps |
5.3% |
||||||||||||
|
Quality |
66.58 |
50.4% |
33.58 |
65.93 |
48.0% |
31.62 |
1.0% |
240 |
bps |
6.2% |
||||||||||||
|
Clarion |
73.14 |
47.9% |
35.01 |
74.37 |
44.2% |
32.85 |
(1.7%) |
370 |
bps |
6.6% |
||||||||||||
|
Econo Lodge |
53.10 |
47.4% |
25.14 |
52.44 |
45.7% |
23.95 |
1.3% |
170 |
bps |
5.0% |
||||||||||||
|
Rodeway |
49.34 |
47.7% |
23.55 |
48.32 |
44.8% |
21.63 |
2.1% |
290 |
bps |
8.9% |
||||||||||||
|
MainStay |
66.31 |
69.2% |
45.87 |
65.04 |
66.3% |
43.09 |
2.0% |
290 |
bps |
6.5% |
||||||||||||
|
Suburban |
41.13 |
69.7% |
28.68 |
39.51 |
65.8% |
25.98 |
4.1% |
390 |
bps |
10.4% |
||||||||||||
|
Ascend Collection |
113.44 |
60.4% |
68.50 |
108.34 |
57.0% |
61.70 |
4.7% |
340 |
bps |
11.0% |
||||||||||||
|
Total |
$ 70.72 |
54.1% |
$ 38.22 |
$ 69.31 |
51.8% |
$ 35.86 |
2.0% |
230 |
bps |
6.6% |
||||||||||||
|
* Operating statistics represent hotel operations from March through May |
||||||||||||||||||||||
|
For the Quarter Ended |
For the Six Months Ended |
||||||||||
|
6/30/2011 |
6/30/2010 |
6/30/2011 |
6/30/2010 |
||||||||
|
System-wide effective royalty rate |
4.33% |
4.29% |
4.34% |
4.30% |
|||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 5 |
|||||||||||||||||
|
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA |
||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||
|
June 30, 2011 |
June 30, 2010 |
Variance |
||||||||||||||||
|
Hotels |
Rooms |
Hotels |
Rooms |
Hotels |
Rooms |
% |
% |
|||||||||||
|
Comfort Inn |
1,416 |
110,736 |
1,446 |
113,677 |
(30) |
(2,941) |
(2.1%) |
(2.6%) |
||||||||||
|
Comfort Suites |
613 |
47,441 |
621 |
48,200 |
(8) |
(759) |
(1.3%) |
(1.6%) |
||||||||||
|
Sleep |
394 |
28,625 |
392 |
28,586 |
2 |
39 |
0.5% |
0.1% |
||||||||||
|
Quality |
1,027 |
89,571 |
984 |
88,453 |
43 |
1,118 |
4.4% |
1.3% |
||||||||||
|
Clarion |
193 |
28,335 |
175 |
25,188 |
18 |
3,147 |
10.3% |
12.5% |
||||||||||
|
Econo Lodge |
778 |
48,197 |
785 |
48,543 |
(7) |
(346) |
(0.9%) |
(0.7%) |
||||||||||
|
Rodeway |
377 |
20,506 |
381 |
21,473 |
(4) |
(967) |
(1.0%) |
(4.5%) |
||||||||||
|
MainStay |
39 |
3,007 |
36 |
2,798 |
3 |
209 |
8.3% |
7.5% |
||||||||||
|
Suburban |
61 |
7,255 |
63 |
7,608 |
(2) |
(353) |
(3.2%) |
(4.6%) |
||||||||||
|
Ascend Collection |
44 |
3,392 |
32 |
2,646 |
12 |
746 |
37.5% |
28.2% |
||||||||||
|
Cambria Suites |
19 |
2,215 |
21 |
2,453 |
(2) |
(238) |
(9.5%) |
(9.7%) |
||||||||||
|
Domestic Franchises |
4,961 |
389,280 |
4,936 |
389,625 |
25 |
(345) |
0.5% |
(0.1%) |
||||||||||
|
International Franchises |
1,156 |
102,086 |
1,138 |
100,858 |
18 |
1,228 |
1.6% |
1.2% |
||||||||||
|
Total Franchises |
6,117 |
491,366 |
6,074 |
490,483 |
43 |
883 |
0.7% |
0.2% |
||||||||||
|
Exhibit 6 |
|||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||||||||||||
|
SUPPLEMENTAL INFORMATION BY BRAND |
|||||||||||||||||||
|
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS |
|||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||
|
For the Six Months Ended June 30, 2011 |
For the Six Months Ended June 30, 2010 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
5 |
18 |
23 |
3 |
13 |
16 |
67% |
38% |
44% |
||||||||||
|
Comfort Suites |
1 |
4 |
5 |
8 |
1 |
9 |
(88%) |
300% |
(44%) |
||||||||||
|
Sleep |
3 |
1 |
4 |
2 |
- |
2 |
50% |
NM |
100% |
||||||||||
|
Quality |
- |
35 |
35 |
1 |
31 |
32 |
(100%) |
13% |
9% |
||||||||||
|
Clarion |
- |
8 |
8 |
- |
6 |
6 |
NM |
33% |
33% |
||||||||||
|
Econo Lodge |
- |
18 |
18 |
- |
22 |
22 |
NM |
(18%) |
(18%) |
||||||||||
|
Rodeway |
- |
18 |
18 |
1 |
19 |
20 |
(100%) |
(5%) |
(10%) |
||||||||||
|
MainStay |
1 |
3 |
4 |
3 |
- |
3 |
(67%) |
NM |
33% |
||||||||||
|
Suburban |
2 |
1 |
3 |
1 |
- |
1 |
100% |
NM |
200% |
||||||||||
|
Ascend Collection |
- |
5 |
5 |
- |
3 |
3 |
NM |
67% |
67% |
||||||||||
|
Cambria Suites |
2 |
- |
2 |
3 |
- |
3 |
(33%) |
NM |
(33%) |
||||||||||
|
Total Domestic System |
14 |
111 |
125 |
22 |
95 |
117 |
(36%) |
17% |
7% |
||||||||||
|
For the Three Months Ended June 30, 2011 |
For the Three Months Ended June 30, 2010 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
3 |
11 |
14 |
2 |
5 |
7 |
50% |
120% |
100% |
||||||||||
|
Comfort Suites |
1 |
2 |
3 |
6 |
1 |
7 |
(83%) |
100% |
(57%) |
||||||||||
|
Sleep |
1 |
1 |
2 |
- |
- |
- |
NM |
NM |
NM |
||||||||||
|
Quality |
- |
11 |
11 |
- |
20 |
20 |
NM |
(45%) |
(45%) |
||||||||||
|
Clarion |
- |
3 |
3 |
- |
3 |
3 |
NM |
0% |
0% |
||||||||||
|
Econo Lodge |
- |
12 |
12 |
- |
12 |
12 |
NM |
0% |
0% |
||||||||||
|
Rodeway |
- |
13 |
13 |
- |
8 |
8 |
NM |
63% |
63% |
||||||||||
|
MainStay |
- |
3 |
3 |
1 |
- |
1 |
(100%) |
NM |
200% |
||||||||||
|
Suburban |
2 |
1 |
3 |
- |
- |
- |
NM |
NM |
NM |
||||||||||
|
Ascend Collection |
- |
4 |
4 |
- |
1 |
1 |
NM |
300% |
300% |
||||||||||
|
Cambria Suites |
1 |
- |
1 |
3 |
- |
3 |
(67%) |
NM |
(67%) |
||||||||||
|
Total Domestic System |
8 |
61 |
69 |
12 |
50 |
62 |
(33%) |
22% |
11% |
||||||||||
|
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 |
|||||||||||||||||||||||||
|
June 30, 2011 |
June 30, 2010 |
||||||||||||||||||||||||
|
Units |
Units |
Conversion |
New Construction |
Total |
|||||||||||||||||||||
|
Conversion |
New Construction |
Total |
Conversion |
New Construction |
Total |
Units |
% |
Units |
% |
Units |
% |
||||||||||||||
|
Comfort Inn |
27 |
50 |
77 |
33 |
69 |
102 |
(6) |
(18%) |
(19) |
(28%) |
(25) |
(25%) |
|||||||||||||
|
Comfort Suites |
3 |
108 |
111 |
1 |
136 |
137 |
2 |
200% |
(28) |
(21%) |
(26) |
(19%) |
|||||||||||||
|
Sleep Inn |
- |
62 |
62 |
1 |
101 |
102 |
(1) |
(100%) |
(39) |
(39%) |
(40) |
(39%) |
|||||||||||||
|
Quality |
25 |
5 |
30 |
41 |
11 |
52 |
(16) |
(39%) |
(6) |
(55%) |
(22) |
(42%) |
|||||||||||||
|
Clarion |
16 |
2 |
18 |
15 |
5 |
20 |
1 |
7% |
(3) |
(60%) |
(2) |
(10%) |
|||||||||||||
|
Econo Lodge |
34 |
1 |
35 |
35 |
2 |
37 |
(1) |
(3%) |
(1) |
(50%) |
(2) |
(5%) |
|||||||||||||
|
Rodeway |
15 |
1 |
16 |
26 |
3 |
29 |
(11) |
(42%) |
(2) |
(67%) |
(13) |
(45%) |
|||||||||||||
|
MainStay |
4 |
37 |
41 |
- |
39 |
39 |
4 |
NM |
(2) |
(5%) |
2 |
5% |
|||||||||||||
|
Suburban |
- |
22 |
22 |
- |
26 |
26 |
- |
NM |
(4) |
(15%) |
(4) |
(15%) |
|||||||||||||
|
Ascend Collection |
5 |
3 |
8 |
3 |
4 |
7 |
2 |
67% |
(1) |
(25%) |
1 |
14% |
|||||||||||||
|
Cambria Suites |
- |
31 |
31 |
- |
35 |
35 |
- |
NM |
(4) |
(11%) |
(4) |
(11%) |
|||||||||||||
|
129 |
322 |
451 |
155 |
431 |
586 |
(26) |
(17%) |
(109) |
(25%) |
(135) |
(23%) |
||||||||||||||
|
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 June 30, |
Six Months Ended June 30, |
|||||||||
|
2011 |
2010 |
2011 |
2010 |
||||||||
|
Franchising Revenues: |
|||||||||||
|
Total Revenues |
$ 165,301 |
$ 149,848 |
$ 280,582 |
$ 257,269 |
|||||||
|
Adjustments: |
|||||||||||
|
Marketing and reservation revenues |
(90,832) |
(80,389) |
(153,799) |
(139,229) |
|||||||
|
Hotel operations |
(1,073) |
(1,109) |
(1,937) |
(1,976) |
|||||||
|
Franchising Revenues |
$ 73,396 |
$ 68,350 |
$ 124,846 |
$ 116,064 |
|||||||
|
Franchising Margins: |
|||||||||||
|
Operating Margin: |
|||||||||||
|
Total Revenues |
$ 165,301 |
$ 149,848 |
$ 280,582 |
$ 257,269 |
|||||||
|
Operating Income |
$ 45,122 |
$ 43,607 |
$ 70,801 |
$ 67,444 |
|||||||
|
Operating Margin |
27.3% |
29.1% |
25.2% |
26.2% |
|||||||
|
Adjusted Franchising Margin: |
|||||||||||
|
Franchising Revenues |
$ 73,396 |
$ 68,350 |
$ 124,846 |
$ 116,064 |
|||||||
|
Operating Income |
$ 45,122 |
$ 43,607 |
$ 70,801 |
$ 67,444 |
|||||||
|
Employee termination benefits |
347 |
(119) |
417 |
233 |
|||||||
|
Hotel operations |
(213) |
(301) |
(244) |
(412) |
|||||||
|
$ 45,256 |
$ 43,187 |
$ 70,974 |
$ 67,265 |
||||||||
|
Adjusted Franchising Margins |
61.7% |
63.2% |
56.8% |
58.0% |
|||||||
|
CALCULATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS |
|||||||||||
|
(dollar amounts in thousands) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||
|
2011 |
2010 |
2011 |
2010 |
||||||||
|
Selling, general and administrative costs |
$ 26,539 |
$ 22,824 |
$ 50,386 |
$ 44,640 |
|||||||
|
Employee termination benefits |
(347) |
119 |
(417) |
(233) |
|||||||
|
Adjusted Selling, General and Administrative Costs |
$ 26,192 |
$ 22,943 |
$ 49,969 |
$ 44,407 |
|||||||
|
CALCULATION OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) |
|||||||||||
|
(In thousands, except per share amounts) |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||
|
2011 |
2010 |
2011 |
2010 |
||||||||
|
Net Income |
$ 27,578 |
$ 27,011 |
$ 43,308 |
$ 42,804 |
|||||||
|
Adjustments: |
|||||||||||
|
Employee termination benefits |
218 |
(74) |
262 |
146 |
|||||||
|
Loss on land held for sale |
- |
- |
1,111 |
- |
|||||||
|
Adjusted Net Income |
$ 27,796 |
$ 26,937 |
$ 44,681 |
$ 42,950 |
|||||||
|
Weighted average shares outstanding-diluted |
59,918 |
59,676 |
59,854 |
59,639 |
|||||||
|
Diluted Earnings Per Share |
$ 0.46 |
$ 0.45 |
$ 0.72 |
$ 0.72 |
|||||||
|
Adjustments: |
|||||||||||
|
Employee termination benefits |
- |
- |
0.01 |
- |
|||||||
|
Loss on land held for sale |
- |
- |
0.02 |
- |
|||||||
|
Adjusted Diluted Earnings Per Share (EPS) |
$ 0.46 |
$ 0.45 |
$ 0.75 |
$ 0.72 |
|||||||
|
Adjusted EBITDA Reconciliation |
||||||||||||
|
(in millions) |
||||||||||||
|
Q2 2011 Actuals |
Q2 2010 Actuals |
Six Months Ended June 30, 2011 Actuals |
Six Months Ended June 30, 2010 Actuals |
Full-Year 2011 Outlook |
||||||||
|
Operating Income (per GAAP) |
$ 45.1 |
$ 43.6 |
$ 70.8 |
$ 67.4 |
$169.1-$171.1 |
|||||||
|
Employee termination benefits |
0.3 |
(0.1) |
0.4 |
0.2 |
0.4 |
|||||||
|
Depreciation and amortization |
1.9 |
2.2 |
3.9 |
4.4 |
8.5 |
|||||||
|
Adjusted Earnings before interest, taxes, depreciation & amortization (non-GAAP) |
$ 47.3 |
$ 45.7 |
$ 75.1 |
$ 72.0 |
$178-$180 |
|||||||
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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