ROCKVILLE, Md., Oct. 24, 2014 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE:CHH) today reported the following highlights for the third quarter of 2014(1):
-- Franchising revenues for the three months ended September 30, 2014
totaled $99.4 million, an increase of 8 percent from the same period of
2013.
-- Earnings before interest, taxes, depreciation and amortization
("EBITDA") from franchising activities for the three months ended
September 30, 2014 totaled $74 million, an increase of 8 percent from
the same period of 2013.
-- Franchising margins for the three months ended September 30, 2014 were
72.3 percent, an increase of 40 basis points from the same period of
2013.
-- Diluted earnings per share ("EPS") from continuing operations for the
three months ended September 30, 2014 totaled $0.67 compared to $0.65
for the same period of 2013.
-- Domestic royalty fees for the three months ended September 30, 2014
totaled $79.5 million, an increase of 9 percent from the same period of
2013.
-- Domestic unit and room growth increased 1.6 percent and 0.9 percent from
September 30, 2013, respectively.
-- Domestic system-wide revenue per available room ("RevPAR") increased 8.8
percent in the third quarter of 2014 as occupancy and average daily
rates increased 320 basis points and 3.4 percent, respectively from the
same period of 2013.
-- New construction domestic hotel executed franchise agreements totaled 31
for the three months ended September 30, 2014, an increase of 55 percent
from the same period of the prior year.
-- The company executed 85 relicensing and renewal hotel franchise
agreements for the three months ended September 30, 2014, an increase of
18 percent compared to the same period of 2013.
-- The company's domestic pipeline of hotels under construction, awaiting
conversion or approved for development increased 14 percent from
September 30, 2013.
-- The company purchased 0.4 million shares of common stock under its share
repurchase program during the three months ended September 30, 2014 at a
total cost of approximately $18.4 million.
"Our efforts and initiatives to improve business delivery, hotel revenue yield and our innovative brand programs are leading to strong results for our franchisees, while simultaneously improving our value proposition which drives franchise development results," said Stephen P. Joyce, president and chief executive officer. "Our strong brands and innovative marketing and reservation programs, supported by a favorable lodging environment, resulted in average daily rate and occupancy gains driving domestic RevPAR growth of approximately 9% over the same period of the prior year. We are optimistic that strong RevPAR performance should continue in the fourth quarter and into 2015, supporting future growth."
http://photos.prnewswire.com/prnvar/20140807/134515
Discontinued Operations
In the first quarter of 2014, the company entered into a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the disposal of these hotels met the definition of a discontinued operation since the operations and cash flows of these components will be eliminated from the on-going operations of the company and the company will not have significant continuing involvement in the operations of the hotels after the disposal transaction.
At September 30, 2014, the company had disposed of all three of the owned MainStay Suites hotels and the new owners of each of those hotels had executed new franchise agreements with the company.
The company's consolidated statement of income for the three and nine months ended September 30, 2014 reflect these three company-owned hotels as discontinued operations. In addition, the company's statement of income for the three and nine months ended September 30, 2013 has been recast to account for these operations as discontinued. Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.
Outlook
The company's consolidated 2014 outlook reflects continued growth of the company's core hotel franchising business, continued investment in the SkyTouch division and the sale of the three company-owned Mainstay Suites hotels described below as well as the following assumptions:
-- All figures assume no additional repurchases of common stock under the
company's share repurchase program; and
-- The effective tax rate for continuing operations is expected to be 30.7%
and 30.3% for the fourth quarter and full- year 2014, respectively.
Franchising
-- EBITDA from franchising activities for full-year 2014 are expected to
range between $234 million and $237 million;
-- Net domestic unit growth for 2014 is expected to range between 1% and
2%;
-- RevPAR is expected to increase approximately 9% for the fourth quarter
and range between 8% and 8.5% for full-year 2014;
-- The effective royalty rate is expected to decline 5 basis points for
full-year 2014 as compared to full-year 2013.
SkyTouch
-- Reductions in EBITDA relating to our investment in the SkyTouch division
for full-year 2014 are expected to be approximately $18 million;
-- Execution of third-party contracts results in annualized revenue ranging
between $4 million and $6 million with realized revenues for the year
ended December 31, 2014 totaling approximately $1 million; and
-- SG&A expenses are forecasted to be approximately $19 million related to
investment in business development, sales and marketing and
non-capitalizable product development expenditures related to the
division's cloud-based hotel operating system's technology related
products and services.
Discontinued Operations
-- Company EBITDA projections exclude the three company-owned Mainstay
Suites hotels which generated EBITDA of approximately $1.1 million in
2013; and
-- Diluted EPS projections for the full-year 2014 include a gain on sale of
the three company-owned Mainstay Suites hotels totaling $0.03 per share.
Consolidated Outlook
The company's fourth quarter 2014 diluted EPS is expected to be $0.34. The company expects full-year 2014 diluted EPS to range between $1.99 and $2.02. EBITDA for full-year 2014 are expected to range between $216 million and $219 million.
Items Impacting Comparability
We reported on August 5, 2014, that the company changed its accounting for royalty and certain marketing and reservation system fees to restate these fees in order to comply with generally accepted accounting principles in the United States ("GAAP") by reporting these fees in the same period that the underlying gross room revenues are earned by our franchisees rather than one month in arrears (our historical practice).
The financial results and supplemental operating information as of and for the periods ended September 30, 2014 have been prepared in accordance with the new accounting practice.
As a result of this change, the income statement and cash flow statement included herein for the periods ended September 30, 2013 have been preliminarily restated based on currently available information to reflect our new accounting practice for these fees. The company plans to file the restated quarterly financial statements through amended Form 10-Q filings to be filed prior to the filing of our Form 10-Q for the periods ended September 30, 2014. Until the restatement is complete, additional information may become available which could cause the company's current estimates to change.
Due to the seasonality of the company's business, the impact of the new revenue recognition practice will generally be positive for the first two quarters of the year and negative in the final two quarters of the year. However, this change is expected to result in minor, non-material positive revisions to total revenues, operating income and earnings per share for the full years ended December 31, 2013, 2012 and 2011. The company plans to file the revised annual financial statements through an amended Form10-K to be filed prior to our Form 10-Q for the periods ended September 30, 2014. The December 31, 2013 balance sheet included in Exhibit 2 has been preliminarily revised to reflect this change.
More information about this accounting change and restatement can be found in the company's Form 8-K filed on August 5, 2014.
Conference Call
Choice will conduct a conference call on Friday, October 24, 2014 at 10:00 a.m. EDT to discuss the company's third quarter 2014 results. The dial-in number to listen to the call is 1-877-474-9506, and the access code is 86921299. International callers should dial 1-857-244-7559 and enter the access code 86921299. 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 page will feature a conference call microphone icon to access the call.
The call will be recorded and available for replay beginning at 2:00 p.m. EDT on Friday, October 24, 2014 through Friday, October 31, 2014 by calling 1-888-286-8010 and entering access code 90750875. The international dial-in number for the replay is 1-617-801-6888, access code 90750875. In addition, the call will be archived for approximately one-year and available on www.choicehotels.com via the Investor Info link.
About Choice Hotels
Choice Hotels International, Inc. franchises more than 6,300 hotels, representing more than 500,000 rooms, in the United States and more than 35 other countries and territories. As of September 30, 2014, 422 hotels, representing more than 32,000 rooms, were under construction, awaiting conversion or approved for development in the United States. Additionally, 94 hotels, representing approximately 8,600 rooms, were under construction, awaiting conversion or approved for development in more than 15 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, as well as its Ascend Hotel Collection membership program, serve guests worldwide.
SkyTouch Technology is a division of Choice Hotels International, Inc. that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company.
Additional corporate information can 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 Private Securities Litigation Reform Act of 1995. Generally, our use of words such as "expect," "estimate," "believe," "anticipate," "will," "forecast," "plan," "project," "assume" or similar words of futurity identify such forward-looking statements. These 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, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock 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 company's filings with the Securities and Exchange Commission including our annual reports on Form 10-K and our quarterly reports filed on Form 10-Q. 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 Presented in this Press Release
EBITDA, franchising revenues, franchising SG&A, franchising EBITDA and franchising margins are non-GAAP financial measurements. These measures should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by generally accepted accounting principles in the United States ("GAAP"), such as 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 EBITDA, franchising revenues, franchising SG&A and franchising margins to the most comparable GAAP financial measures. We discuss management's reasons for reporting these non-GAAP measures below.
Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects income from continuing operations excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, other (gains) and losses and equity in net income of unconsolidated affiliates. We consider EBITDA to be an indicator of operating performance because we use it to measure our ability to service debt, fund capital expenditures, and expand our business. We also use EBITDA, as do analysts, lenders, investors and others, to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.
Franchising Revenues, Operating Income, EBITDA, SG&A and Margins: The company reports franchising revenues, operating income, EBITDA, SG&A and margins which exclude marketing and reservation revenues and SkyTouch Technology operations. Marketing and reservation activities are excluded since the company is required by its franchise agreements to use the fees collected for marketing and reservation activities; as such, no income or loss to the company is generated. Cumulative marketing and reservation system fees not expended are recorded as a liability in the company's financial statements and are carried over to the next 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 deferred and recorded as an asset in the company's financial statements and recovered in future periods. SkyTouch Technology is a division of the company that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company. The operations for SkyTouch Technology are excluded since they do not reflect the company's core franchising business but are an adjacent, complimentary line of business. These non-GAAP measures are a commonly used measure of performance in our industry and facilitate comparisons between the company and its competitors.
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, Ascend Hotel Collection and SkyTouch Technologyare proprietary trademarks and service marks of Choice Hotels International.
© 2014 Choice Hotels International, Inc. All rights reserved.
(1 )See the discussion under "Items Impacting Comparability" for information about how the recently announced accounting change and restatement of certain 2013 interim periods impacts the comparative discussion of our results of operations contained herein.
Choice Hotels International, Inc.
Exhibit 1
Consolidated Statements of Income
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
Restated Variance Restated Variance
2014 2013 $ % 2014 2013 $ %
---- ---- --- --- ---- ---- --- ---
(In thousands, except per share amounts)
REVENUES:
Royalty fees $86,091 $79,460 $6,631 8% $222,301 $208,206 $14,095 7%
Initial franchise and relicensing fees 4,299 4,650 (351) (8%) 12,761 12,843 (82) (1%)
Procurement services 5,495 4,708 787 17% 18,293 16,204 2,089 13%
Marketing and reservation 115,653 124,809 (9,156) (7%) 309,025 311,204 (2,179) (1%)
Other 3,630 3,091 539 17% 10,188 7,362 2,826 38%
----- ----- --- --- ------ ----- ----- ---
Total revenues 215,168 216,718 (1,550) (1%) 572,568 555,819 16,749 3%
OPERATING EXPENSES:
Selling, general and administrative 30,236 26,409 3,827 14% 88,329 82,808 5,521 7%
Depreciation and amortization 2,293 2,272 21 1% 6,903 6,701 202 3%
Marketing and reservation 115,653 124,809 (9,156) (7%) 309,025 311,204 (2,179) (1%)
------- ------- ------ --- ------- ------- ------ ---
Total operating expenses 148,182 153,490 (5,308) (3%) 404,257 400,713 3,544 1%
Operating income 66,986 63,228 3,758 6% 168,311 155,106 13,205 9%
OTHER INCOME AND EXPENSES, NET:
Interest expense 10,495 10,757 (262) (2%) 31,376 32,334 (958) (3%)
Interest income (355) (676) 321 (47%) (1,205) (1,979) 774 (39%)
Other (gains) and losses 375 (703) 1,078 (153%) (158) (1,266) 1,108 (88%)
Equity in net (income) loss of affiliates 513 (421) 934 (222%) 578 (340) 918 (270%)
Total other income and expenses, net 11,028 8,957 2,071 23% 30,591 28,749 1,842 6%
------ ----- ----- --- ------ ------ ----- ---
Income from continuing operations before income taxes 55,958 54,271 1,687 3% 137,720 126,357 11,363 9%
Income taxes 16,542 15,698 844 5% 41,556 36,384 5,172 14%
------ ------ --- --- ------ ------ ----- ---
Income from continuing operations, net of income taxes 39,416 38,573 843 2% 96,164 89,973 6,191 7%
Income (loss) from discontinued operations, net of income taxes (51) 143 (194) (136%) 1,711 293 1,418 484%
--- --- ---- ----- ----- --- ----- ---
Net income $39,365 $38,716 $649 2% $97,875 $90,266 $7,609 8%
======= ======= ==== === ======= ======= ====== ===
Basic earnings per share
Continuing operations $0.67 $0.66 $0.01 2% $1.65 $1.54 $0.11 7%
Discontinued operations - - - NM 0.03 - 0.03 NM
$0.67 $0.66 $0.01 2% $1.68 $1.54 $0.14 9%
===== ===== ===== === ===== ===== ===== ===
Diluted earnings per share
Continuing operations $0.67 $0.65 $0.02 3% $1.63 $1.53 $0.10 7%
Discontinued operations - 0.01 (0.01) (100%) 0.03 - 0.03 NM
$0.67 $0.66 $0.01 2% $1.66 $1.53 $0.13 8%
===== ===== ===== === ===== ===== ===== ===
Choice Hotels International, Inc. Exhibit 2
Consolidated Balance Sheets
(In thousands, except per share amounts) September 30, December 31,
2014 2013
---- ----
(Unaudited) (Revised)
ASSETS
Cash and cash equivalents $244,392 $167,795
Accounts receivable, net 109,748 82,385
Other current assets 51,286 56,794
------ ------
Total
current
assets 405,426 306,974
Fixed assets and intangibles, net 131,710 143,618
Notes receivable, net of allowances 35,045 31,872
Advances, marketing and reservation
activities - 5,844
Investments, employee benefit plans, at
fair value 16,845 15,950
Other assets 75,161 52,164
------ ------
Total
assets $664,187 $556,422
-------- --------
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable and accrued expenses $110,891 $98,288
Deferred revenue 65,839 61,188
Current portion of long-term debt 11,967 10,088
Other current liabilities 10,760 4,774
Total current
liabilities 199,457 174,338
Long-term debt 774,756 783,471
Deferred compensation & retirement plan
obligations 23,118 22,527
Other liabilities 63,871 28,957
------ ------
Total
liabilities 1,061,202 1,009,293
Common stock, $0.01 par value 582 586
Additional paid-in-capital 123,251 117,768
Accumulated other comprehensive loss (5,928) (6,217)
Treasury stock, at cost (933,180) (918,031)
Retained earnings 418,260 353,023
------- -------
Total
shareholders'
deficit (397,015) (452,871)
$664,187 $556,422
Total liabilities
and
shareholders'
deficit
-----------------
Choice Hotels International,
Inc. Exhibit 3
Consolidated Statements of Cash
Flows
(Unaudited)
(In thousands) Nine Months Ended September 30,
-------------------------------
2014 2013
---- ----
CASH FLOWS FROM OPERATING
ACTIVITIES: (Restated)
Net income $97,875 $90,266
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 6,903 7,094
Gain on sale of assets (2,809) -
Provision for bad debts, net 1,676 2,264
Non-cash stock compensation
and other charges 8,093 8,635
Non-cash interest and other
(income) loss 1,836 1,057
Deferred income taxes (19,216) (351)
Dividends received from equity
method investments 1,101 1,109
Equity in net (income) loss of
affiliates 578 (340)
Changes in assets and
liabilities:
Receivables (30,497) (26,635)
Advances to/from marketing and
reservation activities, net 60,187 29,712
Forgivable notes receivable,
net (8,776) (5,722)
Accounts payable 21,845 1,280
Accrued expenses (11,082) (22,757)
Income taxes payable/
receivable 7,981 24,107
Deferred revenue 4,751 (9,686)
Other assets (1,125) (2,395)
Other liabilities (943) 8,851
---- -----
NET CASH PROVIDED BY OPERATING
ACTIVITIES 138,378 106,489
------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Investment in property and
equipment (11,886) (27,922)
Proceeds from sales of assets 15,612 -
Equity method investments (14,362) (3,761)
Purchases of investments,
employee benefit plans (1,520) (1,845)
Proceeds from sales of
investments, employee benefit
plans 966 4,052
Issuance of mezzanine and other
notes receivable (3,340) -
Collections of mezzanine and
other notes receivable 9,832 224
Other items, net (592) (578)
---- ----
NET CASH USED IN INVESTING
ACTIVITIES (5,290) (29,830)
------ -------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Net repayments pursuant to
revolving credit facility - (27,500)
Principal payments on long-
term debt (7,110) (6,158)
Proceeds from the issuance of
long-term debt 226 3,360
Purchase of treasury stock (23,757) (3,684)
Dividends paid (32,767) (22,026)
Excess tax benefits from stock-
based compensation 2,297 1,216
Proceeds from exercise of stock
options 4,984 6,677
----- -----
NET CASH USED IN FINANCING
ACTIVITIES (56,127) (48,115)
------- -------
Net change in cash and cash
equivalents 76,961 28,544
Effect of foreign exchange rate
changes on cash and cash
equivalents (364) (1,583)
Cash and cash equivalents at
beginning of period 167,795 134,177
------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $244,392 $161,138
======== ========
Exhibit 4
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
For the Nine Months Ended September 30, 2014 For the Nine Months Ended September 30, 2013 Change
-------------------------------------------- -------------------------------------------- ------
Average Daily Average Daily Average Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $86.92 64.9% $56.43 $84.14 61.9% $52.08 3.3% 300 bps 8.4%
Comfort Suites 91.06 67.8% 61.78 87.91 64.6% 56.81 3.6% 320 bps 8.7%
Sleep 77.75 63.7% 49.52 75.04 60.3% 45.24 3.6% 340 bps 9.5%
Quality 72.87 57.7% 42.05 71.21 54.8% 39.04 2.3% 290 bps 7.7%
Clarion 78.05 55.9% 43.59 76.21 52.6% 40.12 2.4% 330 bps 8.6%
Econo Lodge 58.64 52.9% 31.01 57.32 50.4% 28.89 2.3% 250 bps 7.3%
Rodeway 57.46 56.5% 32.48 55.28 53.3% 29.45 3.9% 320 bps 10.3%
MainStay 75.52 72.9% 55.03 73.25 69.4% 50.87 3.1% 350 bps 8.2%
Suburban 45.29 73.3% 33.19 42.91 71.5% 30.70 5.5% 180 bps 8.1%
Ascend Hotel Collection 120.64 59.8% 72.10 122.67 65.6% 80.52 (1.7%) (580) bps (10.5%)
------ ---- ----- ------ ---- ----- ----- ---- --- ------
Total $77.80 60.9% $47.36 $75.67 58.1% $43.98 2.8% 280 bps 7.7%
====== ==== ====== ====== ==== ====== === === === ===
For the Three Months Ended September 30, 2014 For the Three Months Ended September 30, 2013 Change
--------------------------------------------- --------------------------------------------- ------
Average Daily Average Daily Average Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $92.33 72.0% $66.44 $88.73 68.4% $60.73 4.1% 360 bps 9.4%
Comfort Suites 94.13 72.1% 67.86 90.22 68.1% 61.48 4.3% 400 bps 10.4%
Sleep 80.95 68.4% 55.35 77.72 63.9% 49.66 4.2% 450 bps 11.5%
Quality 77.05 63.3% 48.78 75.14 59.9% 45.02 2.5% 340 bps 8.4%
Clarion 83.40 61.8% 51.49 80.42 57.6% 46.35 3.7% 420 bps 11.1%
Econo Lodge 63.31 59.0% 37.33 61.18 56.0% 34.27 3.5% 300 bps 8.9%
Rodeway 62.71 62.8% 39.35 60.41 58.7% 35.48 3.8% 410 bps 10.9%
MainStay 78.58 77.3% 60.70 75.99 73.0% 55.51 3.4% 430 bps 9.3%
Suburban 46.78 74.6% 34.88 43.45 72.1% 31.32 7.7% 250 bps 11.4%
Ascend Hotel Collection 127.43 61.0% 77.68 124.86 69.7% 87.07 2.1% (870) bps (10.8%)
------ ---- ----- ------ ---- ----- --- ---- --- ------
Total $82.12 66.5% $54.64 $79.39 63.3% $50.22 3.4% 320 bps 8.8%
====== ==== ====== ====== ==== ====== === === === ===
For the Quarter Ended For the Nine Months Ended
--------------------- -------------------------
9/30/2014 9/30/2013 9/30/2014 9/30/2013
System-wide effective royalty rate 4.24% 4.28% 4.28% 4.33%
Exhibit 5
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
September 30, 2014 September 30, 2013 Variance
------------------ ------------------ --------
Hotels Rooms Hotels Rooms Hotels Rooms % %
------ ----- ------ ----- ------ ----- --- ---
Comfort Inn 1,266 98,119 1,312 102,586 (46) (4,467) (3.5%) (4.4%)
Comfort Suites 593 45,873 590 45,519 3 354 0.5% 0.8%
Sleep 374 27,065 378 27,351 (4) (286) (1.1%) (1.0%)
Quality 1,262 103,358 1,193 98,788 69 4,570 5.8% 4.6%
Clarion 183 26,182 188 26,885 (5) (703) (2.7%) (2.6%)
Econo Lodge 846 52,304 821 50,230 25 2,074 3.0% 4.1%
Rodeway 460 25,235 434 24,660 26 575 6.0% 2.3%
MainStay 42 3,304 43 3,331 (1) (27) (2.3%) (0.8%)
Suburban 64 7,164 63 7,213 1 (49) 1.6% (0.7%)
Ascend Hotel Collection 107 9,271 94 8,006 13 1,265 13.8% 15.8%
Cambria Suites 21 2,534 18 2,094 3 440 16.7% 21.0%
--- ----- --- ----- --- --- ---- ----
Domestic Franchises 5,218 400,409 5,134 396,663 84 3,746 1.6% 0.9%
International Franchises 1,168 106,905 1,169 106,000 (1) 905 (0.1%) 0.9%
----- ------- ----- ------- --- --- ----- ---
Total Franchises 6,386 507,314 6,303 502,663 83 4,651 1.3% 0.9%
===== ======= ===== ======= === ===== === ===
Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
For the Nine Months Ended For the Nine Months Ended % Change
September 30, 2014 September 30, 2013
------------------ ------------------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 16 11 27 12 35 47 33% (69%) (43%)
Comfort Suites 11 - 11 7 6 13 57% (100%) (15%)
Sleep 21 1 22 9 1 10 133% 0% 120%
Quality 3 82 85 1 76 77 200% 8% 10%
Clarion 1 15 16 1 12 13 0% 25% 23%
Econo Lodge 1 46 47 - 61 61 NM (25%) (23%)
Rodeway 3 48 51 1 39 40 200% 23% 28%
MainStay 10 1 11 5 - 5 100% NM 120%
Suburban 2 3 5 1 1 2 100% 200% 150%
Ascend Hotel Collection 6 11 17 5 40 45 20% (73%) (62%)
Cambria Suites 5 - 5 2 - 2 150% NM 150%
--- --- --- --- --- --- --- --- ---
Total Domestic System 79 218 297 44 271 315 80% (20%) (6%)
=== === === === === === === ==== ===
For the Three Months Ended For the Three Months Ended % Change
September 30, 2014 September 30, 2013
------------------ ------------------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 6 3 9 7 17 24 (14%) (82%) (63%)
Comfort Suites 4 - 4 2 4 6 100% (100%) (33%)
Sleep 7 - 7 4 1 5 75% (100%) 40%
Quality - 34 34 - 32 32 NM 6% 6%
Clarion 1 4 5 1 5 6 0% (20%) (17%)
Econo Lodge 1 19 20 - 31 31 NM (39%) (35%)
Rodeway 2 17 19 1 15 16 100% 13% 19%
MainStay 5 - 5 1 - 1 400% NM 400%
Suburban 1 - 1 1 - 1 0% NM 0%
Ascend Hotel Collection - 5 5 2 4 6 (100%) 25% (17%)
Cambria Suites 4 - 4 1 - 1 300% NM 300%
--- --- --- --- --- --- --- --- ---
Total Domestic System 31 82 113 20 109 129 55% (25%) (12%)
=== === === === === === === ==== ====
Exhibit 7
CHOICE HOTELS INTERNATIONAL, INC.
DOMESTIC PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT
(UNAUDITED)
A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.
Variance
--------
September 30, 2014 September 30, 2013
Units Units Conversion New Construction Total
----- ----- ---------- ---------------- -----
Conversion New Construction Total Conversion New Construction Total Units % Units % Units %
---------- ---------------- ----- ---------- ---------------- ----- ----- --- ----- --- ----- ---
Comfort Inn 33 51 84 36 50 86 (3) (8%) 1 2% (2) (2%)
Comfort Suites - 47 47 4 47 51 (4) (100%) - 0% (4) (8%)
Sleep Inn 2 62 64 1 45 46 1 100% 17 38% 18 39%
Quality 34 6 40 33 3 36 1 3% 3 100% 4 11%
Clarion 9 3 12 7 2 9 2 29% 1 50% 3 33%
Econo Lodge 36 3 39 33 - 33 3 9% 3 NM 6 18%
Rodeway 31 4 35 24 1 25 7 29% 3 300% 10 40%
MainStay 2 39 41 - 26 26 2 NM 13 50% 15 58%
Suburban 6 11 17 3 12 15 3 100% (1) (8%) 2 13%
Ascend Hotel Collection 8 15 23 13 10 23 (5) (38%) 5 50% - 0%
Cambria Suites - 20 20 - 21 21 - NM (1) (5%) (1) (5%)
--- --- --- --- --- --- --- --- --- --- --- ---
161 261 422 154 217 371 7 5% 44 20% 51 14%
=== === === === === === === === === === === ===
Exhibit 8
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS
(dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Franchising Revenues:
Total Revenues $215,168 $216,718 $572,568 $555,819
Adjustments:
Marketing and reservation revenues (115,653) (124,809) (309,025) (311,204)
Other (92) (13) (213) (13)
Franchising Revenues $99,423 $91,896 $263,330 $244,602
--------------------
Franchising Margins:
Operating Margin:
Total Revenues $215,168 $216,718 $572,568 $555,819
Operating Income $66,986 $63,228 $168,311 $155,106
Operating Margin 31.1% 29.2% 29.4% 27.9%
----------------
Franchising Margin:
Franchising Revenues $99,423 $91,896 $263,330 $244,602
Operating Income $66,986 $63,228 $168,311 $155,106
SkyTouch Division operating loss 4,928 2,841 12,794 7,307
$71,914 $66,069 $181,105 $162,413
------- ------- -------- --------
Franchising Margins 72.3% 71.9% 68.8% 66.4%
-------------------
CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES
(dollar amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Total Selling, General and Administrative Expenses $30,236 $26,409 $88,329 $82,808
SkyTouch Division (4,786) (2,740) (12,322) (7,110)
Franchising Selling, General and Administration Expenses $25,450 $23,669 $76,007 $75,698
CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")
(dollar amounts in thousands)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Income from continuing operations, net of income taxes $39,416 $38,573 $96,164 $89,973
Income taxes 16,542 15,698 41,556 36,384
Interest expense 10,495 10,757 31,376 32,334
Interest income (355) (676) (1,205) (1,979)
Other (gains) and losses 375 (703) (158) (1,266)
Equity in net (income) loss of affiliates 513 (421) 578 (340)
Depreciation and amortization 2,293 2,272 6,903 6,701
EBITDA $69,279 $65,500 $175,214 $161,807
======= ======= ======== ========
Franchising $73,973 $68,227 $187,323 $168,904
SkyTouch (4,694) (2,727) (12,109) (7,097)
$69,279 $65,500 $175,214 $161,807
======= ======= ======== ========
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 9
DISCONTINUED OPERATIONS
(UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
(In thousands) 2014 2013 2014 2013
---- ---- ---- ----
REVENUES:
Hotel operations $ - $1,310 $801 $3,600
------------------------- ------ ---- ------
Total revenues - 1,310 801 3,600
OPERATING EXPENSES:
Hotel operations 52 956 884 2,742
Depreciation and amortization - 127 - 393
--- --- --- ---
Total operating expenses 52 1,083 884 3,135
Operating income (loss) (52) 227 (83) 465
Gain (loss) on disposal of discontinued operations (30) - 2,803 -
--- --- ----- ---
Income (loss) from discontinued operations before income taxes (82) 227 2,720 465
Income tax (benefit) (31) 84 1,009 172
Income (loss) from discontinued operations $(51) $143 $1,711 $293
==== ==== ====== ====
Logo- http://photos.prnewswire.com/prnh/20140807/134515
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/choice-hotels-international-reports-a-9-increase-in-third-quarter-domestic-revpar-and-royalties-511929048.html
SOURCE Choice Hotels International, Inc.
SOURCE: Choice Hotels International, Inc.
PR Newswire
ROCKVILLE, Md., Oct. 24, 2014
ROCKVILLE, Md., Oct. 24, 2014 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE:CHH) today reported the following highlights for the third quarter of 20141:
"Our efforts and initiatives to improve business delivery, hotel revenue yield and our innovative brand programs are leading to strong results for our franchisees, while simultaneously improving our value proposition which drives franchise development results," said Stephen P. Joyce, president and chief executive officer. "Our strong brands and innovative marketing and reservation programs, supported by a favorable lodging environment, resulted in average daily rate and occupancy gains driving domestic RevPAR growth of approximately 9% over the same period of the prior year. We are optimistic that strong RevPAR performance should continue in the fourth quarter and into 2015, supporting future growth."
Discontinued Operations
In the first quarter of 2014, the company entered into a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the disposal of these hotels met the definition of a discontinued operation since the operations and cash flows of these components will be eliminated from the on-going operations of the company and the company will not have significant continuing involvement in the operations of the hotels after the disposal transaction.
At September 30, 2014, the company had disposed of all three of the owned MainStay Suites hotels and the new owners of each of those hotels had executed new franchise agreements with the company.
The company's consolidated statement of income for the three and nine months ended September 30, 2014 reflect these three company-owned hotels as discontinued operations. In addition, the company's statement of income for the three and nine months ended September 30, 2013 has been recast to account for these operations as discontinued. Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.
Outlook
The company's consolidated 2014 outlook reflects continued growth of the company's core hotel franchising business, continued investment in the SkyTouch division and the sale of the three company-owned Mainstay Suites hotels described below as well as the following assumptions:
Franchising
SkyTouch
Discontinued Operations
Consolidated Outlook
The company's fourth quarter 2014 diluted EPS is expected to be $0.34. The company expects full-year 2014 diluted EPS to range between $1.99 and $2.02. EBITDA for full-year 2014 are expected to range between $216 million and $219 million.
Items Impacting Comparability
We reported on August 5, 2014, that the company changed its accounting for royalty and certain marketing and reservation system fees to restate these fees in order to comply with generally accepted accounting principles in the United States ("GAAP") by reporting these fees in the same period that the underlying gross room revenues are earned by our franchisees rather than one month in arrears (our historical practice).
The financial results and supplemental operating information as of and for the periods ended September 30, 2014 have been prepared in accordance with the new accounting practice.
As a result of this change, the income statement and cash flow statement included herein for the periods ended September 30, 2013 have been preliminarily restated based on currently available information to reflect our new accounting practice for these fees. The company plans to file the restated quarterly financial statements through amended Form 10-Q filings to be filed prior to the filing of our Form 10-Q for the periods ended September 30, 2014. Until the restatement is complete, additional information may become available which could cause the company's current estimates to change.
Due to the seasonality of the company's business, the impact of the new revenue recognition practice will generally be positive for the first two quarters of the year and negative in the final two quarters of the year. However, this change is expected to result in minor, non-material positive revisions to total revenues, operating income and earnings per share for the full years ended December 31, 2013, 2012 and 2011. The company plans to file the revised annual financial statements through an amended Form10-K to be filed prior to our Form 10-Q for the periods ended September 30, 2014. The December 31, 2013 balance sheet included in Exhibit 2 has been preliminarily revised to reflect this change.
More information about this accounting change and restatement can be found in the company's Form 8-K filed on August 5, 2014.
Conference Call
Choice will conduct a conference call on Friday, October 24, 2014 at 10:00 a.m. EDT to discuss the company's third quarter 2014 results. The dial-in number to listen to the call is 1-877-474-9506, and the access code is 86921299. International callers should dial 1-857-244-7559 and enter the access code 86921299. 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 page will feature a conference call microphone icon to access the call.
The call will be recorded and available for replay beginning at 2:00 p.m. EDT on Friday, October 24, 2014 through Friday, October 31, 2014 by calling 1-888-286-8010 and entering access code 90750875. The international dial-in number for the replay is 1-617-801-6888, access code 90750875. In addition, the call will be archived for approximately one-year and available on www.choicehotels.com via the Investor Info link.
About Choice Hotels
Choice Hotels International, Inc. franchises more than 6,300 hotels, representing more than 500,000 rooms, in the United States and more than 35 other countries and territories. As of September 30, 2014, 422 hotels, representing more than 32,000 rooms, were under construction, awaiting conversion or approved for development in the United States. Additionally, 94 hotels, representing approximately 8,600 rooms, were under construction, awaiting conversion or approved for development in more than 15 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, as well as its Ascend Hotel Collection membership program, serve guests worldwide.
SkyTouch Technology is a division of Choice Hotels International, Inc. that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company.
Additional corporate information can 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 Private Securities Litigation Reform Act of 1995. Generally, our use of words such as "expect," "estimate," "believe," "anticipate," "will," "forecast," "plan," "project," "assume" or similar words of futurity identify such forward-looking statements. These 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, ability to repay outstanding indebtedness, payment of dividends, repurchases of common stock 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 company's filings with the Securities and Exchange Commission including our annual reports on Form 10-K and our quarterly reports filed on Form 10-Q. 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 Presented in this Press Release
EBITDA, franchising revenues, franchising SG&A, franchising EBITDA and franchising margins are non-GAAP financial measurements. These measures should not be considered as an alternative to any measure of performance or liquidity as promulgated under or authorized by generally accepted accounting principles in the United States ("GAAP"), such as 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 EBITDA, franchising revenues, franchising SG&A and franchising margins to the most comparable GAAP financial measures. We discuss management's reasons for reporting these non-GAAP measures below.
Earnings Before Interest, Taxes, Depreciation and Amortization: EBITDA reflects income from continuing operations excluding the impact of interest expense, interest income, provision for income taxes, depreciation and amortization, other (gains) and losses and equity in net income of unconsolidated affiliates. We consider EBITDA to be an indicator of operating performance because we use it to measure our ability to service debt, fund capital expenditures, and expand our business. We also use EBITDA, as do analysts, lenders, investors and others, to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.
Franchising Revenues, Operating Income, EBITDA, SG&A and Margins: The company reports franchising revenues, operating income, EBITDA, SG&A and margins which exclude marketing and reservation revenues and SkyTouch Technology operations. Marketing and reservation activities are excluded since the company is required by its franchise agreements to use the fees collected for marketing and reservation activities; as such, no income or loss to the company is generated. Cumulative marketing and reservation system fees not expended are recorded as a liability in the company's financial statements and are carried over to the next 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 deferred and recorded as an asset in the company's financial statements and recovered in future periods. SkyTouch Technology is a division of the company that develops and markets cloud-based technology products, including inventory management, pricing and connectivity to third party channels, to hoteliers not under franchise agreements with the company. The operations for SkyTouch Technology are excluded since they do not reflect the company's core franchising business but are an adjacent, complimentary line of business. These non-GAAP measures are a commonly used measure of performance in our industry and facilitate comparisons between the company and its competitors.
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, Ascend Hotel Collection and SkyTouch Technologyare proprietary trademarks and service marks of Choice Hotels International.
© 2014 Choice Hotels International, Inc. All rights reserved.
1 See the discussion under "Items Impacting Comparability" for information about how the recently announced accounting change and restatement of certain 2013 interim periods impacts the comparative discussion of our results of operations contained herein.
|
Choice Hotels International, Inc. |
Exhibit 1 |
|||||||||||||||
|
Consolidated Statements of Income |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
|
Restated |
Variance |
Restated |
Variance |
|||||||||||||
|
2014 |
2013 |
$ |
% |
2014 |
2013 |
$ |
% |
|||||||||
|
(In thousands, except per share amounts) |
||||||||||||||||
|
REVENUES: |
||||||||||||||||
|
Royalty fees |
$ 86,091 |
$ 79,460 |
$ 6,631 |
8% |
$ 222,301 |
$ 208,206 |
$ 14,095 |
7% |
||||||||
|
Initial franchise and relicensing fees |
4,299 |
4,650 |
(351) |
(8%) |
12,761 |
12,843 |
(82) |
(1%) |
||||||||
|
Procurement services |
5,495 |
4,708 |
787 |
17% |
18,293 |
16,204 |
2,089 |
13% |
||||||||
|
Marketing and reservation |
115,653 |
124,809 |
(9,156) |
(7%) |
309,025 |
311,204 |
(2,179) |
(1%) |
||||||||
|
Other |
3,630 |
3,091 |
539 |
17% |
10,188 |
7,362 |
2,826 |
38% |
||||||||
|
Total revenues |
215,168 |
216,718 |
(1,550) |
(1%) |
572,568 |
555,819 |
16,749 |
3% |
||||||||
|
OPERATING EXPENSES: |
||||||||||||||||
|
Selling, general and administrative |
30,236 |
26,409 |
3,827 |
14% |
88,329 |
82,808 |
5,521 |
7% |
||||||||
|
Depreciation and amortization |
2,293 |
2,272 |
21 |
1% |
6,903 |
6,701 |
202 |
3% |
||||||||
|
Marketing and reservation |
115,653 |
124,809 |
(9,156) |
(7%) |
309,025 |
311,204 |
(2,179) |
(1%) |
||||||||
|
Total operating expenses |
148,182 |
153,490 |
(5,308) |
(3%) |
404,257 |
400,713 |
3,544 |
1% |
||||||||
|
Operating income |
66,986 |
63,228 |
3,758 |
6% |
168,311 |
155,106 |
13,205 |
9% |
||||||||
|
OTHER INCOME AND EXPENSES, NET: |
||||||||||||||||
|
Interest expense |
10,495 |
10,757 |
(262) |
(2%) |
31,376 |
32,334 |
(958) |
(3%) |
||||||||
|
Interest income |
(355) |
(676) |
321 |
(47%) |
(1,205) |
(1,979) |
774 |
(39%) |
||||||||
|
Other (gains) and losses |
375 |
(703) |
1,078 |
(153%) |
(158) |
(1,266) |
1,108 |
(88%) |
||||||||
|
Equity in net (income) loss of affiliates |
513 |
(421) |
934 |
(222%) |
578 |
(340) |
918 |
(270%) |
||||||||
|
Total other income and expenses, net |
11,028 |
8,957 |
2,071 |
23% |
30,591 |
28,749 |
1,842 |
6% |
||||||||
|
Income from continuing operations before income taxes |
55,958 |
54,271 |
1,687 |
3% |
137,720 |
126,357 |
11,363 |
9% |
||||||||
|
Income taxes |
16,542 |
15,698 |
844 |
5% |
41,556 |
36,384 |
5,172 |
14% |
||||||||
|
Income from continuing operations, net of income taxes |
39,416 |
38,573 |
843 |
2% |
96,164 |
89,973 |
6,191 |
7% |
||||||||
|
Income (loss) from discontinued operations, net of income taxes |
(51) |
143 |
(194) |
(136%) |
1,711 |
293 |
1,418 |
484% |
||||||||
|
Net income |
$ 39,365 |
$ 38,716 |
$ 649 |
2% |
$ 97,875 |
$ 90,266 |
$ 7,609 |
8% |
||||||||
|
Basic earnings per share |
||||||||||||||||
|
Continuing operations |
$ 0.67 |
$ 0.66 |
$ 0.01 |
2% |
$ 1.65 |
$ 1.54 |
$ 0.11 |
7% |
||||||||
|
Discontinued operations |
- |
- |
- |
NM |
0.03 |
- |
0.03 |
NM |
||||||||
|
$ 0.67 |
$ 0.66 |
$ 0.01 |
2% |
$ 1.68 |
$ 1.54 |
$ 0.14 |
9% |
|||||||||
|
Diluted earnings per share |
||||||||||||||||
|
Continuing operations |
$ 0.67 |
$ 0.65 |
$ 0.02 |
3% |
$ 1.63 |
$ 1.53 |
$ 0.10 |
7% |
||||||||
|
Discontinued operations |
- |
0.01 |
(0.01) |
(100%) |
0.03 |
- |
0.03 |
NM |
||||||||
|
$ 0.67 |
$ 0.66 |
$ 0.01 |
2% |
$ 1.66 |
$ 1.53 |
$ 0.13 |
8% |
|||||||||
|
Choice Hotels International, Inc. |
Exhibit 2 |
||||||
|
Consolidated Balance Sheets |
|||||||
|
(In thousands, except per share amounts) |
September 30, |
December 31, |
|||||
|
2014 |
2013 |
||||||
|
(Unaudited) |
(Revised) |
||||||
|
ASSETS |
|||||||
|
Cash and cash equivalents |
$ 244,392 |
$ 167,795 |
|||||
|
Accounts receivable, net |
109,748 |
82,385 |
|||||
|
Other current assets |
51,286 |
56,794 |
|||||
|
Total current assets |
405,426 |
306,974 |
|||||
|
Fixed assets and intangibles, net |
131,710 |
143,618 |
|||||
|
Notes receivable, net of allowances |
35,045 |
31,872 |
|||||
|
Advances, marketing and reservation activities |
- |
5,844 |
|||||
|
Investments, employee benefit plans, at fair value |
16,845 |
15,950 |
|||||
|
Other assets |
75,161 |
52,164 |
|||||
|
Total assets |
$ 664,187 |
$ 556,422 |
|||||
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
|||||||
|
Accounts payable and accrued expenses |
$ 110,891 |
$ 98,288 |
|||||
|
Deferred revenue |
65,839 |
61,188 |
|||||
|
Current portion of long-term debt |
11,967 |
10,088 |
|||||
|
Other current liabilities |
10,760 |
4,774 |
|||||
|
Total current liabilities |
199,457 |
174,338 |
|||||
|
Long-term debt |
774,756 |
783,471 |
|||||
|
Deferred compensation & retirement plan obligations |
23,118 |
22,527 |
|||||
|
Other liabilities |
63,871 |
28,957 |
|||||
|
Total liabilities |
1,061,202 |
1,009,293 |
|||||
|
Common stock, $0.01 par value |
582 |
586 |
|||||
|
Additional paid-in-capital |
123,251 |
117,768 |
|||||
|
Accumulated other comprehensive loss |
(5,928) |
(6,217) |
|||||
|
Treasury stock, at cost |
(933,180) |
(918,031) |
|||||
|
Retained earnings |
418,260 |
353,023 |
|||||
|
Total shareholders' deficit |
(397,015) |
(452,871) |
|||||
|
Total liabilities and shareholders' deficit |
$ 664,187 |
$ 556,422 |
|||||
|
Choice Hotels International, Inc. |
Exhibit 3 |
||
|
Consolidated Statements of Cash Flows |
|||
|
(Unaudited) |
|||
|
(In thousands) |
Nine Months Ended September 30, |
||
|
2014 |
2013 |
||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
(Restated) |
||
|
Net income |
$ 97,875 |
$ 90,266 |
|
|
Adjustments to reconcile net income to net cash provided |
|||
|
by operating activities: |
|||
|
Depreciation and amortization |
6,903 |
7,094 |
|
|
Gain on sale of assets |
(2,809) |
- |
|
|
Provision for bad debts, net |
1,676 |
2,264 |
|
|
Non-cash stock compensation and other charges |
8,093 |
8,635 |
|
|
Non-cash interest and other (income) loss |
1,836 |
1,057 |
|
|
Deferred income taxes |
(19,216) |
(351) |
|
|
Dividends received from equity method investments |
1,101 |
1,109 |
|
|
Equity in net (income) loss of affiliates |
578 |
(340) |
|
|
Changes in assets and liabilities: |
|||
|
Receivables |
(30,497) |
(26,635) |
|
|
Advances to/from marketing and reservation activities, net |
60,187 |
29,712 |
|
|
Forgivable notes receivable, net |
(8,776) |
(5,722) |
|
|
Accounts payable |
21,845 |
1,280 |
|
|
Accrued expenses |
(11,082) |
(22,757) |
|
|
Income taxes payable/receivable |
7,981 |
24,107 |
|
|
Deferred revenue |
4,751 |
(9,686) |
|
|
Other assets |
(1,125) |
(2,395) |
|
|
Other liabilities |
(943) |
8,851 |
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
138,378 |
106,489 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||
|
Investment in property and equipment |
(11,886) |
(27,922) |
|
|
Proceeds from sales of assets |
15,612 |
- |
|
|
Equity method investments |
(14,362) |
(3,761) |
|
|
Purchases of investments, employee benefit plans |
(1,520) |
(1,845) |
|
|
Proceeds from sales of investments, employee benefit plans |
966 |
4,052 |
|
|
Issuance of mezzanine and other notes receivable |
(3,340) |
- |
|
|
Collections of mezzanine and other notes receivable |
9,832 |
224 |
|
|
Other items, net |
(592) |
(578) |
|
|
NET CASH USED IN INVESTING ACTIVITIES |
(5,290) |
(29,830) |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||
|
Net repayments pursuant to revolving credit facility |
- |
(27,500) |
|
|
Principal payments on long-term debt |
(7,110) |
(6,158) |
|
|
Proceeds from the issuance of long-term debt |
226 |
3,360 |
|
|
Purchase of treasury stock |
(23,757) |
(3,684) |
|
|
Dividends paid |
(32,767) |
(22,026) |
|
|
Excess tax benefits from stock-based compensation |
2,297 |
1,216 |
|
|
Proceeds from exercise of stock options |
4,984 |
6,677 |
|
|
NET CASH USED IN FINANCING ACTIVITIES |
(56,127) |
(48,115) |
|
|
Net change in cash and cash equivalents |
76,961 |
28,544 |
|
|
Effect of foreign exchange rate changes on cash and cash equivalents |
(364) |
(1,583) |
|
|
Cash and cash equivalents at beginning of period |
167,795 |
134,177 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 244,392 |
$ 161,138 |
|
|
Exhibit 4 |
|||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION |
|||||||||||||||||||
|
DOMESTIC HOTEL SYSTEM |
|||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2014 |
For the Nine Months Ended September 30, 2013 |
Change |
|||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
|||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
|||||||||||
|
Comfort Inn |
$ 86.92 |
64.9% |
$ 56.43 |
$ 84.14 |
61.9% |
$ 52.08 |
3.3% |
300 |
bps |
8.4% |
|||||||||
|
Comfort Suites |
91.06 |
67.8% |
61.78 |
87.91 |
64.6% |
56.81 |
3.6% |
320 |
bps |
8.7% |
|||||||||
|
Sleep |
77.75 |
63.7% |
49.52 |
75.04 |
60.3% |
45.24 |
3.6% |
340 |
bps |
9.5% |
|||||||||
|
Quality |
72.87 |
57.7% |
42.05 |
71.21 |
54.8% |
39.04 |
2.3% |
290 |
bps |
7.7% |
|||||||||
|
Clarion |
78.05 |
55.9% |
43.59 |
76.21 |
52.6% |
40.12 |
2.4% |
330 |
bps |
8.6% |
|||||||||
|
Econo Lodge |
58.64 |
52.9% |
31.01 |
57.32 |
50.4% |
28.89 |
2.3% |
250 |
bps |
7.3% |
|||||||||
|
Rodeway |
57.46 |
56.5% |
32.48 |
55.28 |
53.3% |
29.45 |
3.9% |
320 |
bps |
10.3% |
|||||||||
|
MainStay |
75.52 |
72.9% |
55.03 |
73.25 |
69.4% |
50.87 |
3.1% |
350 |
bps |
8.2% |
|||||||||
|
Suburban |
45.29 |
73.3% |
33.19 |
42.91 |
71.5% |
30.70 |
5.5% |
180 |
bps |
8.1% |
|||||||||
|
Ascend Hotel Collection |
120.64 |
59.8% |
72.10 |
122.67 |
65.6% |
80.52 |
(1.7%) |
(580) |
bps |
(10.5%) |
|||||||||
|
Total |
$ 77.80 |
60.9% |
$ 47.36 |
$ 75.67 |
58.1% |
$ 43.98 |
2.8% |
280 |
bps |
7.7% |
|||||||||
|
For the Three Months Ended September 30, 2014 |
For the Three Months Ended September 30, 2013 |
Change |
|||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
|||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
|||||||||||
|
Comfort Inn |
$ 92.33 |
72.0% |
$ 66.44 |
$ 88.73 |
68.4% |
$ 60.73 |
4.1% |
360 |
bps |
9.4% |
|||||||||
|
Comfort Suites |
94.13 |
72.1% |
67.86 |
90.22 |
68.1% |
61.48 |
4.3% |
400 |
bps |
10.4% |
|||||||||
|
Sleep |
80.95 |
68.4% |
55.35 |
77.72 |
63.9% |
49.66 |
4.2% |
450 |
bps |
11.5% |
|||||||||
|
Quality |
77.05 |
63.3% |
48.78 |
75.14 |
59.9% |
45.02 |
2.5% |
340 |
bps |
8.4% |
|||||||||
|
Clarion |
83.40 |
61.8% |
51.49 |
80.42 |
57.6% |
46.35 |
3.7% |
420 |
bps |
11.1% |
|||||||||
|
Econo Lodge |
63.31 |
59.0% |
37.33 |
61.18 |
56.0% |
34.27 |
3.5% |
300 |
bps |
8.9% |
|||||||||
|
Rodeway |
62.71 |
62.8% |
39.35 |
60.41 |
58.7% |
35.48 |
3.8% |
410 |
bps |
10.9% |
|||||||||
|
MainStay |
78.58 |
77.3% |
60.70 |
75.99 |
73.0% |
55.51 |
3.4% |
430 |
bps |
9.3% |
|||||||||
|
Suburban |
46.78 |
74.6% |
34.88 |
43.45 |
72.1% |
31.32 |
7.7% |
250 |
bps |
11.4% |
|||||||||
|
Ascend Hotel Collection |
127.43 |
61.0% |
77.68 |
124.86 |
69.7% |
87.07 |
2.1% |
(870) |
bps |
(10.8%) |
|||||||||
|
Total |
$ 82.12 |
66.5% |
$ 54.64 |
$ 79.39 |
63.3% |
$ 50.22 |
3.4% |
320 |
bps |
8.8% |
|||||||||
|
For the Quarter Ended |
For the Nine Months Ended |
||||||||||||||||||
|
9/30/2014 |
9/30/2013 |
9/30/2014 |
9/30/2013 |
||||||||||||||||
|
System-wide effective royalty rate |
4.24% |
4.28% |
4.28% |
4.33% |
|||||||||||||||
|
Exhibit 5 |
||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
||||||||||||||||
|
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA |
||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||
|
September 30, 2014 |
September 30, 2013 |
Variance |
||||||||||||||
|
Hotels |
Rooms |
Hotels |
Rooms |
Hotels |
Rooms |
% |
% |
|||||||||
|
Comfort Inn |
1,266 |
98,119 |
1,312 |
102,586 |
(46) |
(4,467) |
(3.5%) |
(4.4%) |
||||||||
|
Comfort Suites |
593 |
45,873 |
590 |
45,519 |
3 |
354 |
0.5% |
0.8% |
||||||||
|
Sleep |
374 |
27,065 |
378 |
27,351 |
(4) |
(286) |
(1.1%) |
(1.0%) |
||||||||
|
Quality |
1,262 |
103,358 |
1,193 |
98,788 |
69 |
4,570 |
5.8% |
4.6% |
||||||||
|
Clarion |
183 |
26,182 |
188 |
26,885 |
(5) |
(703) |
(2.7%) |
(2.6%) |
||||||||
|
Econo Lodge |
846 |
52,304 |
821 |
50,230 |
25 |
2,074 |
3.0% |
4.1% |
||||||||
|
Rodeway |
460 |
25,235 |
434 |
24,660 |
26 |
575 |
6.0% |
2.3% |
||||||||
|
MainStay |
42 |
3,304 |
43 |
3,331 |
(1) |
(27) |
(2.3%) |
(0.8%) |
||||||||
|
Suburban |
64 |
7,164 |
63 |
7,213 |
1 |
(49) |
1.6% |
(0.7%) |
||||||||
|
Ascend Hotel Collection |
107 |
9,271 |
94 |
8,006 |
13 |
1,265 |
13.8% |
15.8% |
||||||||
|
Cambria Suites |
21 |
2,534 |
18 |
2,094 |
3 |
440 |
16.7% |
21.0% |
||||||||
|
Domestic Franchises |
5,218 |
400,409 |
5,134 |
396,663 |
84 |
3,746 |
1.6% |
0.9% |
||||||||
|
International Franchises |
1,168 |
106,905 |
1,169 |
106,000 |
(1) |
905 |
(0.1%) |
0.9% |
||||||||
|
Total Franchises |
6,386 |
507,314 |
6,303 |
502,663 |
83 |
4,651 |
1.3% |
0.9% |
||||||||
|
Exhibit 6 |
||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
||||||||||||||||||
|
SUPPLEMENTAL INFORMATION BY BRAND |
||||||||||||||||||
|
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS |
||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||
|
For the Nine Months Ended |
For the Nine Months Ended |
% Change |
||||||||||||||||
|
New |
New |
New |
||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
||||||||||
|
Comfort Inn |
16 |
11 |
27 |
12 |
35 |
47 |
33% |
(69%) |
(43%) |
|||||||||
|
Comfort Suites |
11 |
- |
11 |
7 |
6 |
13 |
57% |
(100%) |
(15%) |
|||||||||
|
Sleep |
21 |
1 |
22 |
9 |
1 |
10 |
133% |
0% |
120% |
|||||||||
|
Quality |
3 |
82 |
85 |
1 |
76 |
77 |
200% |
8% |
10% |
|||||||||
|
Clarion |
1 |
15 |
16 |
1 |
12 |
13 |
0% |
25% |
23% |
|||||||||
|
Econo Lodge |
1 |
46 |
47 |
- |
61 |
61 |
NM |
(25%) |
(23%) |
|||||||||
|
Rodeway |
3 |
48 |
51 |
1 |
39 |
40 |
200% |
23% |
28% |
|||||||||
|
MainStay |
10 |
1 |
11 |
5 |
- |
5 |
100% |
NM |
120% |
|||||||||
|
Suburban |
2 |
3 |
5 |
1 |
1 |
2 |
100% |
200% |
150% |
|||||||||
|
Ascend Hotel Collection |
6 |
11 |
17 |
5 |
40 |
45 |
20% |
(73%) |
(62%) |
|||||||||
|
Cambria Suites |
5 |
- |
5 |
2 |
- |
2 |
150% |
NM |
150% |
|||||||||
|
Total Domestic System |
79 |
218 |
297 |
44 |
271 |
315 |
80% |
(20%) |
(6%) |
|||||||||
|
For the Three Months Ended |
For the Three Months Ended |
% Change |
||||||||||||||||
|
New |
New |
New |
||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
||||||||||
|
Comfort Inn |
6 |
3 |
9 |
7 |
17 |
24 |
(14%) |
(82%) |
(63%) |
|||||||||
|
Comfort Suites |
4 |
- |
4 |
2 |
4 |
6 |
100% |
(100%) |
(33%) |
|||||||||
|
Sleep |
7 |
- |
7 |
4 |
1 |
5 |
75% |
(100%) |
40% |
|||||||||
|
Quality |
- |
34 |
34 |
- |
32 |
32 |
NM |
6% |
6% |
|||||||||
|
Clarion |
1 |
4 |
5 |
1 |
5 |
6 |
0% |
(20%) |
(17%) |
|||||||||
|
Econo Lodge |
1 |
19 |
20 |
- |
31 |
31 |
NM |
(39%) |
(35%) |
|||||||||
|
Rodeway |
2 |
17 |
19 |
1 |
15 |
16 |
100% |
13% |
19% |
|||||||||
|
MainStay |
5 |
- |
5 |
1 |
- |
1 |
400% |
NM |
400% |
|||||||||
|
Suburban |
1 |
- |
1 |
1 |
- |
1 |
0% |
NM |
0% |
|||||||||
|
Ascend Hotel Collection |
- |
5 |
5 |
2 |
4 |
6 |
(100%) |
25% |
(17%) |
|||||||||
|
Cambria Suites |
4 |
- |
4 |
1 |
- |
1 |
300% |
NM |
300% |
|||||||||
|
Total Domestic System |
31 |
82 |
113 |
20 |
109 |
129 |
55% |
(25%) |
(12%) |
|||||||||
|
Exhibit 7 |
||||||||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
||||||||||||||||||||||||
|
DOMESTIC PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT |
||||||||||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||||||||||
|
A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors. |
||||||||||||||||||||||||
|
Variance |
||||||||||||||||||||||||
|
September 30, 2014 |
September 30, 2013 |
|||||||||||||||||||||||
|
Units |
Units |
Conversion |
New Construction |
Total |
||||||||||||||||||||
|
Conversion |
New Construction |
Total |
Conversion |
New Construction |
Total |
Units |
% |
Units |
% |
Units |
% |
|||||||||||||
|
Comfort Inn |
33 |
51 |
84 |
36 |
50 |
86 |
(3) |
(8%) |
1 |
2% |
(2) |
(2%) |
||||||||||||
|
Comfort Suites |
- |
47 |
47 |
4 |
47 |
51 |
(4) |
(100%) |
- |
0% |
(4) |
(8%) |
||||||||||||
|
Sleep Inn |
2 |
62 |
64 |
1 |
45 |
46 |
1 |
100% |
17 |
38% |
18 |
39% |
||||||||||||
|
Quality |
34 |
6 |
40 |
33 |
3 |
36 |
1 |
3% |
3 |
100% |
4 |
11% |
||||||||||||
|
Clarion |
9 |
3 |
12 |
7 |
2 |
9 |
2 |
29% |
1 |
50% |
3 |
33% |
||||||||||||
|
Econo Lodge |
36 |
3 |
39 |
33 |
- |
33 |
3 |
9% |
3 |
NM |
6 |
18% |
||||||||||||
|
Rodeway |
31 |
4 |
35 |
24 |
1 |
25 |
7 |
29% |
3 |
300% |
10 |
40% |
||||||||||||
|
MainStay |
2 |
39 |
41 |
- |
26 |
26 |
2 |
NM |
13 |
50% |
15 |
58% |
||||||||||||
|
Suburban |
6 |
11 |
17 |
3 |
12 |
15 |
3 |
100% |
(1) |
(8%) |
2 |
13% |
||||||||||||
|
Ascend Hotel Collection |
8 |
15 |
23 |
13 |
10 |
23 |
(5) |
(38%) |
5 |
50% |
- |
0% |
||||||||||||
|
Cambria Suites |
- |
20 |
20 |
- |
21 |
21 |
- |
NM |
(1) |
(5%) |
(1) |
(5%) |
||||||||||||
|
161 |
261 |
422 |
154 |
217 |
371 |
7 |
5% |
44 |
20% |
51 |
14% |
|||||||||||||
|
Exhibit 8 |
|||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION |
|||||||||
|
(UNAUDITED) |
|||||||||
|
CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS |
|||||||||
|
(dollar amounts in thousands) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
|
2014 |
2013 |
2014 |
2013 |
||||||
|
Franchising Revenues: |
|||||||||
|
Total Revenues |
$ 215,168 |
$ 216,718 |
$ 572,568 |
$ 555,819 |
|||||
|
Adjustments: |
|||||||||
|
Marketing and reservation revenues |
(115,653) |
(124,809) |
(309,025) |
(311,204) |
|||||
|
Other |
(92) |
(13) |
(213) |
(13) |
|||||
|
Franchising Revenues |
$ 99,423 |
$ 91,896 |
$ 263,330 |
$ 244,602 |
|||||
|
Franchising Margins: |
|||||||||
|
Operating Margin: |
|||||||||
|
Total Revenues |
$ 215,168 |
$ 216,718 |
$ 572,568 |
$ 555,819 |
|||||
|
Operating Income |
$ 66,986 |
$ 63,228 |
$ 168,311 |
$ 155,106 |
|||||
|
Operating Margin |
31.1% |
29.2% |
29.4% |
27.9% |
|||||
|
Franchising Margin: |
|||||||||
|
Franchising Revenues |
$ 99,423 |
$ 91,896 |
$ 263,330 |
$ 244,602 |
|||||
|
Operating Income |
$ 66,986 |
$ 63,228 |
$ 168,311 |
$ 155,106 |
|||||
|
SkyTouch Division operating loss |
4,928 |
2,841 |
12,794 |
7,307 |
|||||
|
$ 71,914 |
$ 66,069 |
$ 181,105 |
$ 162,413 |
||||||
|
Franchising Margins |
72.3% |
71.9% |
68.8% |
66.4% |
|||||
|
CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES |
|||||||||
|
(dollar amounts in thousands) |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
|
2014 |
2013 |
2014 |
2013 |
||||||
|
Total Selling, General and Administrative Expenses |
$ 30,236 |
$ 26,409 |
$ 88,329 |
$ 82,808 |
|||||
|
SkyTouch Division |
(4,786) |
(2,740) |
(12,322) |
(7,110) |
|||||
|
Franchising Selling, General and Administration Expenses |
$ 25,450 |
$ 23,669 |
$ 76,007 |
$ 75,698 |
|||||
|
CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") |
|||||||||
|
(dollar amounts in thousands) |
|||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||
|
2014 |
2013 |
2014 |
2013 |
||||||
|
Income from continuing operations, net of income taxes |
$ 39,416 |
$ 38,573 |
$ 96,164 |
$ 89,973 |
|||||
|
Income taxes |
16,542 |
15,698 |
41,556 |
36,384 |
|||||
|
Interest expense |
10,495 |
10,757 |
31,376 |
32,334 |
|||||
|
Interest income |
(355) |
(676) |
(1,205) |
(1,979) |
|||||
|
Other (gains) and losses |
375 |
(703) |
(158) |
(1,266) |
|||||
|
Equity in net (income) loss of affiliates |
513 |
(421) |
578 |
(340) |
|||||
|
Depreciation and amortization |
2,293 |
2,272 |
6,903 |
6,701 |
|||||
|
EBITDA |
$ 69,279 |
$ 65,500 |
$ 175,214 |
$ 161,807 |
|||||
|
Franchising |
$ 73,973 |
$ 68,227 |
$ 187,323 |
$ 168,904 |
|||||
|
SkyTouch |
(4,694) |
(2,727) |
(12,109) |
(7,097) |
|||||
|
$ 69,279 |
$ 65,500 |
$ 175,214 |
$ 161,807 |
||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 9 |
||||||||
|
DISCONTINUED OPERATIONS |
|||||||||
|
(UNAUDITED) |
|||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||
|
(In thousands) |
2014 |
2013 |
2014 |
2013 |
|||||
|
REVENUES: |
|||||||||
|
Hotel operations |
$ - |
$ 1,310 |
$ 801 |
$ 3,600 |
|||||
|
Total revenues |
- |
1,310 |
801 |
3,600 |
|||||
|
OPERATING EXPENSES: |
|||||||||
|
Hotel operations |
52 |
956 |
884 |
2,742 |
|||||
|
Depreciation and amortization |
- |
127 |
- |
393 |
|||||
|
Total operating expenses |
52 |
1,083 |
884 |
3,135 |
|||||
|
Operating income (loss) |
(52) |
227 |
(83) |
465 |
|||||
|
Gain (loss) on disposal of discontinued operations |
(30) |
- |
2,803 |
- |
|||||
|
Income (loss) from discontinued operations before income taxes |
(82) |
227 |
2,720 |
465 |
|||||
|
Income tax (benefit) |
(31) |
84 |
1,009 |
172 |
|||||
|
Income (loss) from discontinued operations |
$ (51) |
$ 143 |
$ 1,711 |
$ 293 |
|||||
Logo- http://photos.prnewswire.com/prnh/20140807/134515
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/choice-hotels-international-reports-a-9-increase-in-third-quarter-domestic-revpar-and-royalties-511929048.html
SOURCE Choice Hotels International, Inc.
CONTACT: David White, Senior Vice President, Chief Financial Officer & Treasurer, (301) 592-5117; Scott Carman, Director, Public Relations, (301) 592-6361
Web Site: http://www.choicehotels.com
We redesigned the new CH.com with the latest technology. This makes it way faster and easier for you to use.
Sadly, the browser you are currently using does not support our new technology. Please download one of the awesome browsers below and you'll be on your way.