ROCKVILLE, Md., Feb. 18, 2016 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE:CHH) today reported the following highlights for the fourth quarter and full-year 2015:
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Fourth Quarter Highlights
-- Diluted earnings per share ("EPS") from continuing operations for the
three months ended December 31, 2015 totaled $0.51, an increase of 19
percent from the same period of 2014.
-- Revenues for the three months ended December 31, 2015 totaled $211.0
million, an increase of 14 percent from the same period of 2014.
-- Earnings before interest, taxes, depreciation and amortization
("EBITDA") from franchising activities for the three months ended
December 31, 2015 totaled $55.7 million, an increase of 6 percent from
the same period of 2014.
-- Franchising margins for the three months ended December 31, 2015 were
62.3 percent, an increase of 20 basis points from the same period of
2014.
-- Domestic royalty fees for the three months ended December 31, 2015
totaled $63.1 million, an increase of 6.7 percent from the same period
of 2014.
-- Domestic system-wide revenue per available room ("RevPAR") increased 4.3
percent in the fourth quarter of 2015, as occupancy and average daily
rates increased 60 basis points and 3.2 percent, respectively from the
same period of 2014.
-- Domestic units as of December 31, 2015 increased 1.1 percent from
December 31, 2014.
-- Effective royalty rate for the three months ended December 31, 2015 was
4.37 percent, an increase of 9 basis points from the same period of
2014.
-- Domestic relicensing and contract renewal transactions totaled 104 for
the three months ended December 31, 2015, an increase of 12 percent from
the same period of 2014.
-- The company's domestic pipeline of hotels awaiting conversion, under
construction or approved for development as of December 31, 2015
increased 19 percent from December 31, 2014.
"We are pleased to report another record year of revenue, operating income and net income performance," said Stephen P. Joyce, president and chief executive officer, Choice Hotels. "Our performance was driven by continued improvement in our domestic royalty revenues resulting from growth all in 3 critical levers - RevPAR, system-size and effective royalty rate, as well as our franchise development results. Our effective royalty rates for the domestic system increased 9 basis points during the quarter and, excluding the impact of our Comfort rejuvenation strategy, our domestic units under franchise grew 4% from the prior year. As domestic franchise contracts for both new construction and conversion sales continue to strengthen, we are expecting an acceleration of the growth rates for our domestic system size in 2016. We are optimistic that developers will continue to respond to our strong family of brands and are optimistic that RevPAR performance and growth of our effective royalty rates will continue to be strong in 2016."
Full-Year Highlights
-- EBITDA from franchising activities in 2015 totaled $255.8 million, an
increase of $15.8 million or 7 percent from 2014.
-- Revenues for 2015 totaled $859.9 million, an increase of 13 percent from
2014.
-- Franchising revenues for 2015 totaled $366.7 million, an increase of
$21.9 million or 6 percent from 2014.
-- Franchising selling, general and administration ("SG&A") expenses in
2015 totaled $110.9 million, an increase of 5.8 percent from 2014.
-- Franchising margins for 2015 were 67.3 percent, an increase of 10 basis
points from 2014.
-- Diluted EPS from continuing operations in 2015 totaled $2.22, an
increase of 7 percent from 2014.
-- Domestic royalty fees in 2015 totaled $281.3 million, an increase of 7
percent from 2014.
-- Domestic system-wide RevPAR increased 6.5 percent in 2015 as occupancy
and average daily rates increased 160 basis points and 3.7 percent,
respectively, from 2014.
-- The effective royalty rate in 2015 was 4.30 percent, a 2 basis point
increase from 2014.
-- Initial and relicensing fees for 2015 totaled $24.7 million, an increase
of 27 percent from 2014.
-- New franchise contracts executed in 2015 for domestic hotels, totaled
630, an 11 percent increase from 2014.
-- Domestic relicensing and contract renewal transactions in 2015 totaled
408 contracts, an increase of 21 percent from 2014.
-- During 2015, non-franchising activities, which primarily relate to
SkyTouch, and an acquired vacation rental technology business drove $4
million of revenues and a net $19 million operating expense.
Use of Cash Flows
Dividends
During the fourth quarter of 2015, the company's board of directors announced a 5% increase in the current quarterly dividend rate per common share to $0.205 per share. During the year ended December 31, 2015, the company paid cash dividends totaling approximately $45 million.
Share Repurchases
The company repurchased 1.3 million shares of common stock under its share repurchase program during 2015, at a total cost of approximately $66 million. The company currently has authorization to purchase up to 1.7 million additional shares under this program.
Hotel Development & Financing
Pursuant to its program to encourage acceleration of the growth of our upscale select-service Cambria hotel & suites brand, the company's net advances in support of the Cambria brand totaled $61 million during the year ended December 31, 2015. These advances are primarily in the form of joint venture investments, forgivable key money loans, senior and mezzanine lending and site acquisitions. At December 31, 2015, the Company had approximately $129 million outstanding pursuant to these financial support activities. With respect to lending and joint venture investments, the company generally expects to recycle these loans and investments within a five year period.
Discontinued Operations
During 2014, the company entered into and completed a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the sale of these hotels met the definition of a discontinued operation since the operations and cash flows of these components have been eliminated from the on-going operations of the company and the company does not have significant continuing involvement in the operations of the hotels after the transaction. As a result, the company's consolidated statement of income for the three months and year ended December 31, 2014, reflects these three company-owned hotels as discontinued operations.
Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.
Outlook
The company's consolidated 2016 outlook reflects the following assumptions:
Hotel Franchising
-- EBITDA from franchising activities for full-year 2016 are expected to
range between $270 million and $275 million;
-- Net domestic unit growth for 2016 is expected to be between 2% and 3%;
-- RevPAR is expected to increase approximately 2% for first quarter and
range between 3.75% and 4.75% for full-year 2016; and
-- The effective royalty rate is expected to increase between 6 and 8 basis
points for full-year 2016 as compared to full-year 2015.
Non-Hotel Franchising Activities
-- Net reductions in EBITDA relating to our non-hotel franchising
operations, which primarily relate to SkyTouch and vacation rental
activities, for full-year 2016 are expected to range between
approximately $16 million and $19 million.
Other Items
-- The effective tax rate for continuing operations is expected to be
approximately 33.5% for the first quarter and full-year 2016; and
-- All figures assume no further repurchases of common stock under the
company's share repurchase program.
Consolidated Outlook
The company's first quarter 2016 diluted EPS is expected to be at least $0.38. The company expects full-year 2016 diluted EPS to range between $2.30 and $2.36 and full year 2016 EBITDA to range between $252 million and $257 million. The EPS and consolidated EBITDA estimates assume that we incur net reductions in EBITDA related to non-hotel franchising activities at the midpoint of the range for these investments.
Conference Call
Choice will conduct a conference call on Thursday, February 18, 2016 at 10:00 a.m. EST to discuss the company's fourth quarter and full-year 2015 results. The dial-in number to listen to the call is 1-855-638-5678, and the access code is 32610371. International callers should dial 1-920-663-6286 and enter the access code 32610371. The conference call also will be webcast simultaneously via the company's website, www.choicehotels.com. Interested investors and other parties wishing to access the call via the webcast should go to the website 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 1:00 p.m. EST on Thursday, February 18, 2016 through Thursday, February 25, 2016 by calling 1-855-859-2056 and entering access code 32610371. The international dial-in number for the replay is 1-404-537-3406 and the access code is 32610371. 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.(®) (NYSE: CHH) is one of the world's largest lodging companies. With more than 6,400 hotels franchised in more than 35 countries and territories, we represent more than 500,000 rooms around the globe. As of December 31, 2015, 720 hotels were in our development pipeline. Our company's Ascend Hotel Collection(®), Cambria® hotels & suites, Comfort Inn(®), Comfort Suites(®), Sleep Inn(®), Quality(®), Clarion(®), MainStay Suites(®), Suburban Extended Stay Hotel(®), Econo Lodge(®) and Rodeway Inn(®) brands provide a spectrum of lodging choices to meet guests' needs. With more than 25 million members and counting, check out our Choice Privileges® rewards program to see how you can reap the benefits of being a member of the Choice Hotels(®) family. Visit us at www.choicehotels.com for more information.
SkyTouch Technology(®) is a business division of Choice Hotels 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.
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," "should," "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; foreign currency fluctuations; 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 marketing and reservations systems and other operating systems; or ability to grow our franchise system; exposure to risks related to development activities; fluctuations in the supply and demand for hotels rooms; our ability to realize anticipated benefits from acquired businesses; the level of acceptance of alternative growth strategies we may implement; operating risks associated with our international operations; the outcome of litigation; and our ability to manage 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, EBITDA from franchising activities 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, Franchising EBITDA, Franchising SG&A and Margins: The company reports franchising revenues, EBITDA, SG&A and margins which exclude marketing and reservation revenues, the SkyTouch Technology division, recently acquired operations that provide SaaS technology solutions to vacation rental management companies and revenue generated from the ownership of an office building that is leased to a third-party. 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 and our vacation rental technology solutions provider are excluded since they do not reflect the company's core franchising business but are adjacent, complimentary lines 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.
© 2016 Choice Hotels International, Inc. All rights reserved.
Choice Hotels International, Inc. Exhibit 1
Consolidated Statements of Income
(Unaudited)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
Variance Variance
2015 2014 $ % 2015 2014 $ %
---- ---- --- --- ---- ---- --- ---
(In thousands, except per share amounts)
REVENUES:
Royalty fees $67,965 $65,237 $2,728 4% $301,508 $287,538 $13,970 5%
Initial franchise and relicensing fees 6,977 6,720 257 4% 24,680 19,481 5,199 27%
Procurement services 7,404 5,526 1,878 34% 27,071 23,819 3,252 14%
Marketing and reservation 122,465 103,594 18,871 18% 488,763 412,619 76,144 18%
Other 6,140 4,325 1,815 42% 17,856 14,513 3,343 23%
----- ----- ----- --- ------ ------ ----- ---
Total revenues 210,951 185,402 25,549 14% 859,878 757,970 101,908 13%
OPERATING EXPENSES:
Selling, general and administrative 38,542 33,089 5,453 16% 134,254 121,418 12,836 11%
Depreciation and amortization 2,749 2,462 287 12% 11,542 9,365 2,177 23%
Marketing and reservation 122,465 103,594 18,871 18% 488,763 412,619 76,144 18%
------- ------- ------ --- ------- ------- ------ ---
Total operating expenses 163,756 139,145 24,611 18% 634,559 543,402 91,157 17%
Operating income 47,195 46,257 938 2% 225,319 214,568 10,751 5%
OTHER INCOME AND EXPENSES, NET:
Interest expense 10,776 10,110 666 7% 42,833 41,486 1,347 3%
Interest income (598) (556) (42) 8% (1,580) (1,761) 181 (10%)
Other (gains) and losses (581) 585 (1,166) (199%) (820) 427 (1,247) (292%)
Equity in net (income) loss of affiliates (206) 80 (286) (358%) 901 658 243 37%
Total other income and expenses, net 9,391 10,219 (828) (8%) 41,334 40,810 524 1%
----- ------ ---- --- ------ ------ --- ---
Income from continuing operations before income taxes 37,804 36,038 1,766 5% 183,985 173,758 10,227 6%
Income taxes 8,601 10,729 (2,128) (20%) 55,956 52,285 3,671 7%
----- ------ ------ ---- ------ ------ ----- ---
Income from continuing operations, net of income taxes 29,203 25,309 3,894 15% 128,029 121,473 6,556 5%
Income from discontinued operations, net of income taxes - (24) 24 (100%) - 1,687 (1,687) (100%)
--- --- --- ----- --- ----- ------ -----
Net income $29,203 $25,285 $3,918 15% $128,029 $123,160 $4,869 4%
======= ======= ====== === ======== ======== ====== ===
Basic earnings per share
Continuing operations $0.52 $0.44 $0.08 18% $2.24 $2.08 $0.16 8%
Discontinued operations - - - NM - 0.03 (0.03) (100%)
$0.52 $0.44 $0.08 18% $2.24 $2.11 $0.13 6%
===== ===== ===== === ===== ===== ===== ===
Diluted earnings per share
Continuing operations $0.51 $0.43 $0.08 19% $2.22 $2.07 $0.15 7%
Discontinued operations - - - NM - 0.03 (0.03) (100%)
$0.51 $0.43 $0.08 19% $2.22 $2.10 $0.12 6%
===== ===== ===== === ===== ===== ===== ===
Choice Hotels International, Inc. Exhibit 2
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts) December 31, December 31,
2015 2014(1)
---- ------
(Unaudited)
ASSETS
Cash and cash equivalents $193,441 $214,879
Accounts receivable, net 89,352 91,681
Other current assets 28,160 18,869
------ ------
Total
current
assets 310,953 325,429
Fixed assets and intangibles, net 179,433 152,034
Notes receivable, net of allowances 82,572 40,441
Investments, employee benefit plans, at fair value 17,674 17,539
Other assets 126,378 102,474
------- -------
Total
assets $717,010 $637,917
-------- --------
LIABILITIES AND SHAREHOLDERS' DEFICIT
Accounts payable $64,431 $57,124
Accrued expenses and other current liabilities 70,807 64,243
Deferred revenue 71,587 66,382
Current portion of long-term debt 1,191 12,349
Total current
liabilities 208,016 200,098
Long-term debt 812,945 772,729
Deferred compensation & retirement plan
obligations 22,859 23,987
Other liabilities 69,089 69,904
------ ------
Total
liabilities 1,112,909 1,066,718
Total
shareholders'
deficit (395,899) (428,801)
Total
liabilities
and
shareholders'
deficit $717,010 $637,917
-------- --------
(1) The
consolidated
balance
sheet has
been recast
to reflect
the
Company's
adoption of
ASU 2015-03
"Simplifying
the
Presentation
of Debt
Issuance
Costs" and
ASU 2015-17
"Balance
Sheet
Classification
of Deferred
Taxes". As a
result, debt
issuance
costs have
been recast
from other
assets to
long-term
debt and
current
deferred
taxes were
recast as
long-term
assets
Choice
Hotels
International,
Inc. Exhibit 3
Consolidated
Statements
of Cash
Flows
(Unaudited)
(In
thousands) Year Ended December 31,
-----------------------
2015 2014
---- ----
CASH FLOWS
FROM
OPERATING
ACTIVITIES:
Net income $128,029 $123,160
Adjustments
to
reconcile
net income
to net cash
provided
by operating
activities:
Depreciation
and
amortization 11,542 9,365
Gain on sale
of assets (1,521) (2,809)
Provision
for bad
debts, net 1,704 2,775
Non-cash
stock
compensation
and other
charges 11,805 9,706
Non-cash
interest
and other
(income)
loss 3,229 3,174
Deferred
income
taxes 615 (22,899)
Equity
(earnings)
losses from
unconsolidated
joint
ventures,
net of
distributions
received 3,279 2,200
Changes in
assets and
liabilities,
net of
acquisition:
Receivables 401 (14,250)
Advances to/
from
marketing
and
reservation
activities,
net 11,074 70,179
Forgivable
notes
receivable,
net (23,066) (12,914)
Accounts
payable 6,493 9,636
Accrued
expenses
and other
current
liabilities 5,166 6,678
Income taxes
payable/
receivable (4,399) (3,582)
Deferred
revenue 5,251 5,297
Other assets (5,792) (1,250)
Other
liabilities 6,062 (575)
----- ----
NET CASH
PROVIDED BY
OPERATING
ACTIVITIES 159,872 183,891
------- -------
CASH FLOWS
FROM
INVESTING
ACTIVITIES:
Investment
in property
and
equipment (27,765) (20,946)
Proceeds
from sales
of assets 6,347 15,612
Acquisition,
net of cash
acquired (13,269) -
Issuance of
mezzanine
and other
notes
receivable (36,884) (3,340)
Collections
of
mezzanine
and other
notes
receivable 4,849 11,289
Contributions
to equity
method
investments (23,737) (17,789)
Distributions
from equity
method
investments 518 -
Purchases of
investments,
employee
benefit
plans (3,220) (2,794)
Proceeds
from sales
of
investments,
employee
benefit
plans 3,170 964
Other items,
net (9,819) (642)
------ ----
NET CASH
USED BY
INVESTING
ACTIVITIES (99,810) (17,646)
------- -------
CASH FLOWS
FROM
FINANCING
ACTIVITIES:
Net
borrowings
pursuant to
revolving
credit
facilities 158,867 -
Principal
payments on
long-term
debt (130,501) (10,108)
Proceeds
from the
issuance of
long-term
debt 176 250
Debt
issuance
costs (2,169) -
Purchase of
treasury
stock (72,873) (77,972)
Dividends
paid (45,214) (43,529)
Excess tax
benefits
from stock-
based
compensation 5,207 3,721
Proceeds
from
exercise of
stock
options 7,056 10,098
----- ------
NET CASH
USED BY
FINANCING
ACTIVITIES (79,451) (117,540)
------- --------
Net change
in cash and
cash
equivalents (19,389) 48,705
Effect of
foreign
exchange
rate
changes on
cash and
cash
equivalents (2,049) (1,621)
Cash and
cash
equivalents
at
beginning
of period 214,879 167,795
------- -------
CASH AND
CASH
EQUIVALENTS
AT END OF
PERIOD $193,441 $214,879
======== ========
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 4
SUPPLEMENTAL OPERATING INFORMATION
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 Change
------------------------------------ ------------------------------------ ------
Average Daily Average Daily Average Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $89.68 65.0% $58.25 $86.08 63.3% $54.50 4.2% 170 bps 6.9%
Comfort Suites 93.89 68.3% 64.16 90.24 66.5% 60.01 4.0% 180 bps 6.9%
Sleep 80.41 63.9% 51.41 77.13 62.5% 48.24 4.3% 140 bps 6.6%
Quality 75.06 58.2% 43.69 71.98 56.1% 40.39 4.3% 210 bps 8.2%
Clarion 79.85 57.2% 45.63 77.65 54.5% 42.34 2.8% 270 bps 7.8%
Econo Lodge 59.61 53.5% 31.90 57.85 51.6% 29.86 3.0% 190 bps 6.8%
Rodeway 59.75 56.3% 33.64 56.68 55.1% 31.25 5.4% 120 bps 7.6%
MainStay 77.02 67.1% 51.71 74.82 71.4% 53.40 2.9% (430) bps (3.2%)
Suburban 47.61 75.5% 35.95 45.25 71.8% 32.51 5.2% 370 bps 10.6%
Ascend Hotel Collection 127.27 58.5% 74.47 121.49 60.3% 73.20 4.8% (180) bps 1.7%
------ ---- ----- ------ ---- ----- --- ---- --- ---
Total $79.86 61.1% $48.78 $77.03 59.5% $45.80 3.7% 160 bps 6.5%
====== ==== ====== ====== ==== ====== === === === ===
For the Three Months Ended December 31, 2015 For the Three Months Ended December 31, 2014 Change
-------------------------------------------- -------------------------------------------- ------
Average Daily Average Daily Average Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
---- --------- ------ ---- --------- ------ ---- --------- ------
Comfort Inn $86.31 59.4% $51.25 $83.22 58.4% $48.59 3.7% 100 bps 5.5%
Comfort Suites 90.85 63.7% 57.90 87.51 62.4% 54.65 3.8% 130 bps 5.9%
Sleep 77.35 58.7% 45.41 75.09 59.0% 44.30 3.0% (30) bps 2.5%
Quality 71.82 52.5% 37.68 68.96 51.3% 35.37 4.1% 120 bps 6.5%
Clarion 76.13 51.8% 39.43 76.21 50.3% 38.29 (0.1%) 150 bps 3.0%
Econo Lodge 56.79 48.8% 27.72 55.18 47.7% 26.33 2.9% 110 bps 5.3%
Rodeway 57.00 49.9% 28.47 54.01 50.9% 27.47 5.5% (100) bps 3.6%
MainStay 73.73 60.1% 44.30 72.56 67.0% 48.59 1.6% (690) bps (8.8%)
Suburban 47.15 71.1% 33.51 45.11 67.5% 30.45 4.5% 360 bps 10.0%
Ascend Hotel Collection 126.92 54.4% 69.09 124.75 62.2% 77.56 1.7% (780) bps (10.9%)
------ ---- ----- ------ ---- ----- --- ---- --- ------
Total $76.81 55.7% $42.76 $74.42 55.1% $41.00 3.2% 60 bps 4.3%
====== ==== ====== ====== ==== ====== === === === ===
For the Three Months Ended For the Year Ended
-------------------------- ------------------
12/31/2015 12/31/2014 12/31/2015 12/31/2014
System-wide effective royalty rate 4.37% 4.28% 4.30% 4.28%
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
December 31, 2015 December 31, 2014 Variance
----------------- ----------------- --------
Hotels Rooms Hotels Rooms Hotels Rooms % %
------ ----- ------ ----- ------ ----- --- ---
Comfort Inn 1,156 89,545 1,240 95,862 (84) (6,317) (6.8%) (6.6%)
Comfort Suites 569 43,949 577 44,632 (8) (683) (1.4%) (1.5%)
Sleep 377 27,047 371 26,811 6 236 1.6% 0.9%
Quality 1,379 110,116 1,284 104,454 95 5,662 7.4% 5.4%
Clarion 175 24,449 178 25,049 (3) (600) (1.7%) (2.4%)
Econo Lodge 856 52,978 856 52,878 - 100 0.0% 0.2%
Rodeway 513 28,880 474 26,172 39 2,708 8.2% 10.3%
MainStay 52 3,846 45 3,568 7 278 15.6% 7.8%
Suburban 62 6,994 65 7,198 (3) (204) (4.6%) (2.8%)
Ascend Hotel Collection 112 9,455 109 9,395 3 60 2.8% 0.6%
Cambria hotel & suites 25 3,113 22 2,642 3 471 13.6% 17.8%
--- ----- --- ----- --- --- ---- ----
Domestic Franchises 5,276 400,372 5,221 398,661 55 1,711 1.1% 0.4%
International Franchises 1,147 107,111 1,158 106,617 (11) 494 (0.9%) 0.5%
----- ------- ----- ------- --- --- ----- ---
Total Franchises 6,423 507,483 6,379 505,278 44 2,205 0.7% 0.4%
===== ======= ===== ======= === ===== === ===
Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 % Change
------------------------------------ ------------------------------------ --------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 37 39 76 31 24 55 19% 63% 38%
Comfort Suites 45 6 51 39 1 40 15% 500% 28%
Sleep 34 - 34 36 2 38 (6%) (100%) (11%)
Quality 3 193 196 3 166 169 0% 16% 16%
Clarion - 12 12 1 28 29 (100%) (57%) (59%)
Econo Lodge - 60 60 3 79 82 (100%) (24%) (27%)
Rodeway - 104 104 3 76 79 (100%) 37% 32%
MainStay 27 - 27 20 3 23 35% (100%) 17%
Suburban 1 6 7 4 5 9 (75%) 20% (22%)
Ascend Hotel Collection 5 32 37 11 23 34 (55%) 39% 9%
Cambria hotel & suites 21 5 26 8 - 8 163% NM 225%
--- --- --- --- --- --- --- --- ---
Total Domestic System 173 457 630 159 407 566 9% 12% 11%
=== === === === === === === === ===
For the Three Months Ended December 31, 2015 For the Three Months Ended December 31,
2014 % Change
-------------------------------------------- ---------------------------------------- --------
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
------------ ---------- ----- ------------ ---------- ----- ------------ ---------- -----
Comfort Inn 20 11 31 15 13 28 33% (15%) 11%
Comfort Suites 27 3 30 28 1 29 (4%) 200% 3%
Sleep 15 - 15 15 1 16 0% (100%) (6%)
Quality - 79 79 - 84 84 NM (6%) (6%)
Clarion - 5 5 - 13 13 NM (62%) (62%)
Econo Lodge - 21 21 2 33 35 (100%) (36%) (40%)
Rodeway - 47 47 - 28 28 NM 68% 68%
MainStay 11 - 11 10 2 12 10% (100%) (8%)
Suburban - 2 2 2 2 4 (100%) 0% (50%)
Ascend Hotel Collection 2 10 12 5 12 17 (60%) (17%) (29%)
Cambria hotel & suites 7 3 10 3 - 3 133% NM 233%
--- --- --- --- --- --- --- --- ---
Total Domestic System 82 181 263 80 189 269 3% (4%) (2%)
=== === === === === === === === ===
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
--------
December 31, 2015 December 31, 2014
Units Units
----- -----
Conversion New Construction Total
---------- ---------------- -----
Conversion New Construction Total Conversion New Construction Total Units % Units % Units %
---------- ---------------- ----- ---------- ---------------- ----- ----- --- ----- --- ----- ---
Comfort Inn 38 83 121 36 64 100 2 6% 19 30% 21 21%
Comfort Suites 3 95 98 - 75 75 3 NM 20 27% 23 31%
Sleep Inn - 81 81 2 72 74 (2) (100%) 9 13% 7 9%
Quality 53 5 58 52 5 57 1 2% - 0% 1 2%
Clarion 7 2 9 12 2 14 (5) (42%) - 0% (5) (36%)
Econo Lodge 23 4 27 32 5 37 (9) (28%) (1) (20%) (10) (27%)
Rodeway 47 2 49 31 4 35 16 52% (2) (50%) 14 40%
MainStay - 60 60 1 46 47 (1) (100%) 14 30% 13 28%
Suburban 5 8 13 4 12 16 1 25% (4) (33%) (3) (19%)
Ascend Hotel Collection 28 19 47 14 20 34 14 100% (1) (5%) 13 38%
Cambria hotel & suites 5 38 43 - 21 21 5 NM 17 81% 22 105%
--- --- --- --- --- --- --- --- --- --- --- ---
209 397 606 184 326 510 25 14% 71 22% 96 19%
=== === === === === === === === === === === ===
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 8
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS
(dollar amounts in thousands) Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2015 2014 2015 2014
---- ---- ---- ----
Franchising Revenues:
Total Revenues $210,951 $185,402 $859,878 $757,970
Adjustments:
Marketing and reservation revenues (122,465) (103,594) (488,763) (412,619)
Non-franchising activities (1,943) (387) (4,416) (600)
Franchising Revenues $86,543 $81,421 $366,699 $344,751
Franchising Margins:
Operating Margin:
Total Revenues $210,951 $185,402 $859,878 $757,970
Operating Income $47,195 $46,257 $225,319 $214,568
Operating Margin 22.4% 24.9% 26.2% 28.3%
Franchising Margin:
Franchising Revenues $86,543 $81,421 $366,699 $344,751
Operating Income $47,195 $46,257 $225,319 $214,568
Non-franchising activities
operating loss 6,722 4,271 21,529 17,065
$53,917 $50,528 $246,848 $231,633
------- ------- -------- --------
Franchising Margins 62.3% 62.1% 67.3% 67.2%
CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES
(dollar amounts in thousands) Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2015 2014 2015 2014
---- ---- ---- ----
Total Selling, General and
Administrative Expenses $38,542 $33,089 $134,254 $121,418
Non-Franchising Activities (7,746) (4,336) (23,376) (16,658)
Franchising Selling, General and
Administration Expenses $30,796 $28,753 $110,878 $104,760
CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA")
(dollar amounts in thousands)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2015 2014 2015 2014
---- ---- ---- ----
Income from continuing operations, net
of income taxes $29,203 $25,309 $128,029 $121,473
Income taxes 8,601 10,729 55,956 52,285
Interest expense 10,776 10,110 42,833 41,486
Interest income (598) (556) (1,580) (1,761)
Other (gains) and losses (581) 585 (820) 427
Equity in net (income) loss of
affiliates (206) 80 901 658
Depreciation and amortization 2,749 2,462 11,542 9,365
EBITDA $49,944 $48,719 $236,861 $223,933
======= ======= ======== ========
Franchising $55,747 $52,668 $255,821 $239,991
Non-Franchising activities (5,803) (3,949) (18,960) (16,058)
$49,944 $48,719 $236,861 $223,933
======= ======= ======== ========
CHOICE HOTELS INTERNATIONAL, INC. Exhibit 9
DISCONTINUED OPERATIONS
(UNAUDITED)
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
(In thousands) 2015 2014 2015 2014
---- ---- ---- ----
REVENUES:
Hotel operations $ - $ - $ - $801
------------------------- ---------------------------- -------------------------- ----
Total revenues - - - 801
OPERATING EXPENSES:
Hotel operations - 43 - 927
--- --- --- ---
Total operating
expenses - 43 - 927
Operating income (loss) - (43) - (126)
Gain (loss) on disposal
of discontinued
operations - 4 - 2,807
--- --- --- -----
Income (loss) from
discontinued
operations before
income taxes - (39) - 2,681
Income tax (benefit) - (15) - 994
Income (loss) from
discontinued
operations $ - $(24) $ - $1,687
========================= ==== ========================== ======
Logo - http://photos.prnewswire.com/prnh/20140807/134515
SOURCE Choice Hotels International, Inc.
SOURCE: Choice Hotels International, Inc.
PR Newswire
ROCKVILLE, Md., Feb. 18, 2016
ROCKVILLE, Md., Feb. 18, 2016 /PRNewswire/ -- Choice Hotels International, Inc. (NYSE:CHH) today reported the following highlights for the fourth quarter and full-year 2015:
Fourth Quarter Highlights
"We are pleased to report another record year of revenue, operating income and net income performance," said Stephen P. Joyce, president and chief executive officer, Choice Hotels. "Our performance was driven by continued improvement in our domestic royalty revenues resulting from growth all in 3 critical levers – RevPAR, system-size and effective royalty rate, as well as our franchise development results. Our effective royalty rates for the domestic system increased 9 basis points during the quarter and, excluding the impact of our Comfort rejuvenation strategy, our domestic units under franchise grew 4% from the prior year. As domestic franchise contracts for both new construction and conversion sales continue to strengthen, we are expecting an acceleration of the growth rates for our domestic system size in 2016. We are optimistic that developers will continue to respond to our strong family of brands and are optimistic that RevPAR performance and growth of our effective royalty rates will continue to be strong in 2016."
Full-Year Highlights
Use of Cash Flows
Dividends
During the fourth quarter of 2015, the company's board of directors announced a 5% increase in the current quarterly dividend rate per common share to $0.205 per share. During the year ended December 31, 2015, the company paid cash dividends totaling approximately $45 million.
Share Repurchases
The company repurchased 1.3 million shares of common stock under its share repurchase program during 2015, at a total cost of approximately $66 million. The company currently has authorization to purchase up to 1.7 million additional shares under this program.
Hotel Development & Financing
Pursuant to its program to encourage acceleration of the growth of our upscale select-service Cambria hotel & suites brand, the company's net advances in support of the Cambria brand totaled $61 million during the year ended December 31, 2015. These advances are primarily in the form of joint venture investments, forgivable key money loans, senior and mezzanine lending and site acquisitions. At December 31, 2015, the Company had approximately $129 million outstanding pursuant to these financial support activities. With respect to lending and joint venture investments, the company generally expects to recycle these loans and investments within a five year period.
Discontinued Operations
During 2014, the company entered into and completed a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the sale of these hotels met the definition of a discontinued operation since the operations and cash flows of these components have been eliminated from the on-going operations of the company and the company does not have significant continuing involvement in the operations of the hotels after the transaction. As a result, the company's consolidated statement of income for the three months and year ended December 31, 2014, reflects these three company-owned hotels as discontinued operations.
Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.
Outlook
The company's consolidated 2016 outlook reflects the following assumptions:
Hotel Franchising
Non-Hotel Franchising Activities
Other Items
Consolidated Outlook
The company's first quarter 2016 diluted EPS is expected to be at least $0.38. The company expects full-year 2016 diluted EPS to range between $2.30 and $2.36 and full year 2016 EBITDA to range between $252 million and $257 million. The EPS and consolidated EBITDA estimates assume that we incur net reductions in EBITDA related to non-hotel franchising activities at the midpoint of the range for these investments.
Conference Call
Choice will conduct a conference call on Thursday, February 18, 2016 at 10:00 a.m. EST to discuss the company's fourth quarter and full-year 2015 results. The dial-in number to listen to the call is 1-855-638-5678, and the access code is 32610371. International callers should dial 1-920-663-6286 and enter the access code 32610371. The conference call also will be webcast simultaneously via the company's website, www.choicehotels.com. Interested investors and other parties wishing to access the call via the webcast should go to the website 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 1:00 p.m. EST on Thursday, February 18, 2016 through Thursday, February 25, 2016 by calling 1-855-859-2056 and entering access code 32610371. The international dial-in number for the replay is 1-404-537-3406 and the access code is 32610371. 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.® (NYSE: CHH) is one of the world's largest lodging companies. With more than 6,400 hotels franchised in more than 35 countries and territories, we represent more than 500,000 rooms around the globe. As of December 31, 2015, 720 hotels were in our development pipeline. Our company's Ascend Hotel Collection®, Cambria® hotels & suites, Comfort Inn®, Comfort Suites®, Sleep Inn®, Quality®, Clarion®, MainStay Suites®, Suburban Extended Stay Hotel®, Econo Lodge® and Rodeway Inn® brands provide a spectrum of lodging choices to meet guests' needs. With more than 25 million members and counting, check out our Choice Privileges® rewards program to see how you can reap the benefits of being a member of the Choice Hotels® family. Visit us at www.choicehotels.com for more information.
SkyTouch Technology® is a business division of Choice Hotels 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.
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," "should," "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; foreign currency fluctuations; 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 marketing and reservations systems and other operating systems; or ability to grow our franchise system; exposure to risks related to development activities; fluctuations in the supply and demand for hotels rooms; our ability to realize anticipated benefits from acquired businesses; the level of acceptance of alternative growth strategies we may implement; operating risks associated with our international operations; the outcome of litigation; and our ability to manage 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, EBITDA from franchising activities 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, Franchising EBITDA, Franchising SG&A and Margins: The company reports franchising revenues, EBITDA, SG&A and margins which exclude marketing and reservation revenues, the SkyTouch Technology division, recently acquired operations that provide SaaS technology solutions to vacation rental management companies and revenue generated from the ownership of an office building that is leased to a third-party. 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 and our vacation rental technology solutions provider are excluded since they do not reflect the company's core franchising business but are adjacent, complimentary lines 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.
© 2016 Choice Hotels International, Inc. All rights reserved.
|
Choice Hotels International, Inc. |
Exhibit 1 |
|||||||||||||||
|
Consolidated Statements of Income |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||||||
|
Variance |
Variance |
|||||||||||||||
|
2015 |
2014 |
$ |
% |
2015 |
2014 |
$ |
% |
|||||||||
|
(In thousands, except per share amounts) |
||||||||||||||||
|
REVENUES: |
||||||||||||||||
|
Royalty fees |
$ 67,965 |
$ 65,237 |
$ 2,728 |
4% |
$ 301,508 |
$ 287,538 |
$ 13,970 |
5% |
||||||||
|
Initial franchise and relicensing fees |
6,977 |
6,720 |
257 |
4% |
24,680 |
19,481 |
5,199 |
27% |
||||||||
|
Procurement services |
7,404 |
5,526 |
1,878 |
34% |
27,071 |
23,819 |
3,252 |
14% |
||||||||
|
Marketing and reservation |
122,465 |
103,594 |
18,871 |
18% |
488,763 |
412,619 |
76,144 |
18% |
||||||||
|
Other |
6,140 |
4,325 |
1,815 |
42% |
17,856 |
14,513 |
3,343 |
23% |
||||||||
|
Total revenues |
210,951 |
185,402 |
25,549 |
14% |
859,878 |
757,970 |
101,908 |
13% |
||||||||
|
OPERATING EXPENSES: |
||||||||||||||||
|
Selling, general and administrative |
38,542 |
33,089 |
5,453 |
16% |
134,254 |
121,418 |
12,836 |
11% |
||||||||
|
Depreciation and amortization |
2,749 |
2,462 |
287 |
12% |
11,542 |
9,365 |
2,177 |
23% |
||||||||
|
Marketing and reservation |
122,465 |
103,594 |
18,871 |
18% |
488,763 |
412,619 |
76,144 |
18% |
||||||||
|
Total operating expenses |
163,756 |
139,145 |
24,611 |
18% |
634,559 |
543,402 |
91,157 |
17% |
||||||||
|
Operating income |
47,195 |
46,257 |
938 |
2% |
225,319 |
214,568 |
10,751 |
5% |
||||||||
|
OTHER INCOME AND EXPENSES, NET: |
||||||||||||||||
|
Interest expense |
10,776 |
10,110 |
666 |
7% |
42,833 |
41,486 |
1,347 |
3% |
||||||||
|
Interest income |
(598) |
(556) |
(42) |
8% |
(1,580) |
(1,761) |
181 |
(10%) |
||||||||
|
Other (gains) and losses |
(581) |
585 |
(1,166) |
(199%) |
(820) |
427 |
(1,247) |
(292%) |
||||||||
|
Equity in net (income) loss of affiliates |
(206) |
80 |
(286) |
(358%) |
901 |
658 |
243 |
37% |
||||||||
|
Total other income and expenses, net |
9,391 |
10,219 |
(828) |
(8%) |
41,334 |
40,810 |
524 |
1% |
||||||||
|
Income from continuing operations before income taxes |
37,804 |
36,038 |
1,766 |
5% |
183,985 |
173,758 |
10,227 |
6% |
||||||||
|
Income taxes |
8,601 |
10,729 |
(2,128) |
(20%) |
55,956 |
52,285 |
3,671 |
7% |
||||||||
|
Income from continuing operations, net of income taxes |
29,203 |
25,309 |
3,894 |
15% |
128,029 |
121,473 |
6,556 |
5% |
||||||||
|
Income from discontinued operations, net of income taxes |
- |
(24) |
24 |
(100%) |
- |
1,687 |
(1,687) |
(100%) |
||||||||
|
Net income |
$ 29,203 |
$ 25,285 |
$ 3,918 |
15% |
$ 128,029 |
$ 123,160 |
$ 4,869 |
4% |
||||||||
|
Basic earnings per share |
||||||||||||||||
|
Continuing operations |
$ 0.52 |
$ 0.44 |
$ 0.08 |
18% |
$ 2.24 |
$ 2.08 |
$ 0.16 |
8% |
||||||||
|
Discontinued operations |
- |
- |
- |
NM |
- |
0.03 |
(0.03) |
(100%) |
||||||||
|
$ 0.52 |
$ 0.44 |
$ 0.08 |
18% |
$ 2.24 |
$ 2.11 |
$ 0.13 |
6% |
|||||||||
|
Diluted earnings per share |
||||||||||||||||
|
Continuing operations |
$ 0.51 |
$ 0.43 |
$ 0.08 |
19% |
$ 2.22 |
$ 2.07 |
$ 0.15 |
7% |
||||||||
|
Discontinued operations |
- |
- |
- |
NM |
- |
0.03 |
(0.03) |
(100%) |
||||||||
|
$ 0.51 |
$ 0.43 |
$ 0.08 |
19% |
$ 2.22 |
$ 2.10 |
$ 0.12 |
6% |
|||||||||
|
Choice Hotels International, Inc. |
Exhibit 2 |
|||||||
|
Condensed Consolidated Balance Sheets |
||||||||
|
(In thousands, except per share amounts) |
December 31, |
December 31, |
||||||
|
2015 |
2014(1) |
|||||||
|
(Unaudited) |
||||||||
|
ASSETS |
||||||||
|
Cash and cash equivalents |
$ 193,441 |
$ 214,879 |
||||||
|
Accounts receivable, net |
89,352 |
91,681 |
||||||
|
Other current assets |
28,160 |
18,869 |
||||||
|
Total current assets |
310,953 |
325,429 |
||||||
|
Fixed assets and intangibles, net |
179,433 |
152,034 |
||||||
|
Notes receivable, net of allowances |
82,572 |
40,441 |
||||||
|
Investments, employee benefit plans, at fair value |
17,674 |
17,539 |
||||||
|
Other assets |
126,378 |
102,474 |
||||||
|
Total assets |
$ 717,010 |
$ 637,917 |
||||||
|
LIABILITIES AND SHAREHOLDERS' DEFICIT |
||||||||
|
Accounts payable |
$ 64,431 |
$ 57,124 |
||||||
|
Accrued expenses and other current liabilities |
70,807 |
64,243 |
||||||
|
Deferred revenue |
71,587 |
66,382 |
||||||
|
Current portion of long-term debt |
1,191 |
12,349 |
||||||
|
Total current liabilities |
208,016 |
200,098 |
||||||
|
Long-term debt |
812,945 |
772,729 |
||||||
|
Deferred compensation & retirement plan obligations |
22,859 |
23,987 |
||||||
|
Other liabilities |
69,089 |
69,904 |
||||||
|
Total liabilities |
1,112,909 |
1,066,718 |
||||||
|
Total shareholders' deficit |
(395,899) |
(428,801) |
||||||
|
Total liabilities and shareholders' deficit |
$ 717,010 |
$ 637,917 |
||||||
|
(1) |
The consolidated balance sheet has been recast to reflect the Company's adoption of ASU 2015-03 "Simplifying the Presentation of Debt Issuance Costs" and ASU 2015-17 "Balance Sheet Classification of Deferred Taxes". As a result, debt issuance costs have been recast from other assets to long-term debt and current deferred taxes were recast as long-term assets |
|||||||
|
Choice Hotels International, Inc. |
Exhibit 3 |
||
|
Consolidated Statements of Cash Flows |
|||
|
(Unaudited) |
|||
|
(In thousands) |
Year Ended December 31, |
||
|
2015 |
2014 |
||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||
|
Net income |
$ 128,029 |
$ 123,160 |
|
|
Adjustments to reconcile net income to net cash provided |
|||
|
by operating activities: |
|||
|
Depreciation and amortization |
11,542 |
9,365 |
|
|
Gain on sale of assets |
(1,521) |
(2,809) |
|
|
Provision for bad debts, net |
1,704 |
2,775 |
|
|
Non-cash stock compensation and other charges |
11,805 |
9,706 |
|
|
Non-cash interest and other (income) loss |
3,229 |
3,174 |
|
|
Deferred income taxes |
615 |
(22,899) |
|
|
Equity (earnings) losses from unconsolidated joint ventures, net of distributions received |
3,279 |
2,200 |
|
|
Changes in assets and liabilities, net of acquisition: |
|||
|
Receivables |
401 |
(14,250) |
|
|
Advances to/from marketing and reservation activities, net |
11,074 |
70,179 |
|
|
Forgivable notes receivable, net |
(23,066) |
(12,914) |
|
|
Accounts payable |
6,493 |
9,636 |
|
|
Accrued expenses and other current liabilities |
5,166 |
6,678 |
|
|
Income taxes payable/receivable |
(4,399) |
(3,582) |
|
|
Deferred revenue |
5,251 |
5,297 |
|
|
Other assets |
(5,792) |
(1,250) |
|
|
Other liabilities |
6,062 |
(575) |
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
159,872 |
183,891 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||
|
Investment in property and equipment |
(27,765) |
(20,946) |
|
|
Proceeds from sales of assets |
6,347 |
15,612 |
|
|
Acquisition, net of cash acquired |
(13,269) |
- |
|
|
Issuance of mezzanine and other notes receivable |
(36,884) |
(3,340) |
|
|
Collections of mezzanine and other notes receivable |
4,849 |
11,289 |
|
|
Contributions to equity method investments |
(23,737) |
(17,789) |
|
|
Distributions from equity method investments |
518 |
- |
|
|
Purchases of investments, employee benefit plans |
(3,220) |
(2,794) |
|
|
Proceeds from sales of investments, employee benefit plans |
3,170 |
964 |
|
|
Other items, net |
(9,819) |
(642) |
|
|
NET CASH USED BY INVESTING ACTIVITIES |
(99,810) |
(17,646) |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||
|
Net borrowings pursuant to revolving credit facilities |
158,867 |
- |
|
|
Principal payments on long-term debt |
(130,501) |
(10,108) |
|
|
Proceeds from the issuance of long-term debt |
176 |
250 |
|
|
Debt issuance costs |
(2,169) |
- |
|
|
Purchase of treasury stock |
(72,873) |
(77,972) |
|
|
Dividends paid |
(45,214) |
(43,529) |
|
|
Excess tax benefits from stock-based compensation |
5,207 |
3,721 |
|
|
Proceeds from exercise of stock options |
7,056 |
10,098 |
|
|
NET CASH USED BY FINANCING ACTIVITIES |
(79,451) |
(117,540) |
|
|
Net change in cash and cash equivalents |
(19,389) |
48,705 |
|
|
Effect of foreign exchange rate changes on cash and cash equivalents |
(2,049) |
(1,621) |
|
|
Cash and cash equivalents at beginning of period |
214,879 |
167,795 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 193,441 |
$ 214,879 |
|
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 4 |
||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION |
|||||||||||||||||||||
|
DOMESTIC HOTEL SYSTEM |
|||||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||||
|
For the Year Ended December 31, 2015 |
For the Year Ended December 31, 2014 |
Change |
|||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
|||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
|||||||||||||
|
Comfort Inn |
$ 89.68 |
65.0% |
$ 58.25 |
$ 86.08 |
63.3% |
$ 54.50 |
4.2% |
170 |
bps |
6.9% |
|||||||||||
|
Comfort Suites |
93.89 |
68.3% |
64.16 |
90.24 |
66.5% |
60.01 |
4.0% |
180 |
bps |
6.9% |
|||||||||||
|
Sleep |
80.41 |
63.9% |
51.41 |
77.13 |
62.5% |
48.24 |
4.3% |
140 |
bps |
6.6% |
|||||||||||
|
Quality |
75.06 |
58.2% |
43.69 |
71.98 |
56.1% |
40.39 |
4.3% |
210 |
bps |
8.2% |
|||||||||||
|
Clarion |
79.85 |
57.2% |
45.63 |
77.65 |
54.5% |
42.34 |
2.8% |
270 |
bps |
7.8% |
|||||||||||
|
Econo Lodge |
59.61 |
53.5% |
31.90 |
57.85 |
51.6% |
29.86 |
3.0% |
190 |
bps |
6.8% |
|||||||||||
|
Rodeway |
59.75 |
56.3% |
33.64 |
56.68 |
55.1% |
31.25 |
5.4% |
120 |
bps |
7.6% |
|||||||||||
|
MainStay |
77.02 |
67.1% |
51.71 |
74.82 |
71.4% |
53.40 |
2.9% |
(430) |
bps |
(3.2%) |
|||||||||||
|
Suburban |
47.61 |
75.5% |
35.95 |
45.25 |
71.8% |
32.51 |
5.2% |
370 |
bps |
10.6% |
|||||||||||
|
Ascend Hotel Collection |
127.27 |
58.5% |
74.47 |
121.49 |
60.3% |
73.20 |
4.8% |
(180) |
bps |
1.7% |
|||||||||||
|
Total |
$ 79.86 |
61.1% |
$ 48.78 |
$ 77.03 |
59.5% |
$ 45.80 |
3.7% |
160 |
bps |
6.5% |
|||||||||||
|
For the Three Months Ended December 31, 2015 |
For the Three Months Ended December 31, 2014 |
Change |
|||||||||||||||||||
|
Average Daily |
Average Daily |
Average Daily |
|||||||||||||||||||
|
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
Rate |
Occupancy |
RevPAR |
|||||||||||||
|
Comfort Inn |
$ 86.31 |
59.4% |
$ 51.25 |
$ 83.22 |
58.4% |
$ 48.59 |
3.7% |
100 |
bps |
5.5% |
|||||||||||
|
Comfort Suites |
90.85 |
63.7% |
57.90 |
87.51 |
62.4% |
54.65 |
3.8% |
130 |
bps |
5.9% |
|||||||||||
|
Sleep |
77.35 |
58.7% |
45.41 |
75.09 |
59.0% |
44.30 |
3.0% |
(30) |
bps |
2.5% |
|||||||||||
|
Quality |
71.82 |
52.5% |
37.68 |
68.96 |
51.3% |
35.37 |
4.1% |
120 |
bps |
6.5% |
|||||||||||
|
Clarion |
76.13 |
51.8% |
39.43 |
76.21 |
50.3% |
38.29 |
(0.1%) |
150 |
bps |
3.0% |
|||||||||||
|
Econo Lodge |
56.79 |
48.8% |
27.72 |
55.18 |
47.7% |
26.33 |
2.9% |
110 |
bps |
5.3% |
|||||||||||
|
Rodeway |
57.00 |
49.9% |
28.47 |
54.01 |
50.9% |
27.47 |
5.5% |
(100) |
bps |
3.6% |
|||||||||||
|
MainStay |
73.73 |
60.1% |
44.30 |
72.56 |
67.0% |
48.59 |
1.6% |
(690) |
bps |
(8.8%) |
|||||||||||
|
Suburban |
47.15 |
71.1% |
33.51 |
45.11 |
67.5% |
30.45 |
4.5% |
360 |
bps |
10.0% |
|||||||||||
|
Ascend Hotel Collection |
126.92 |
54.4% |
69.09 |
124.75 |
62.2% |
77.56 |
1.7% |
(780) |
bps |
(10.9%) |
|||||||||||
|
Total |
$ 76.81 |
55.7% |
$ 42.76 |
$ 74.42 |
55.1% |
$ 41.00 |
3.2% |
60 |
bps |
4.3% |
|||||||||||
|
For the Three Months Ended |
For the Year Ended |
||||||||||||||||||||
|
12/31/2015 |
12/31/2014 |
12/31/2015 |
12/31/2014 |
||||||||||||||||||
|
System-wide effective royalty rate |
4.37% |
4.28% |
4.30% |
4.28% |
|||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 5 |
||||||||||||||||
|
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA |
|||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||
|
December 31, 2015 |
December 31, 2014 |
Variance |
|||||||||||||||
|
Hotels |
Rooms |
Hotels |
Rooms |
Hotels |
Rooms |
% |
% |
||||||||||
|
Comfort Inn |
1,156 |
89,545 |
1,240 |
95,862 |
(84) |
(6,317) |
(6.8%) |
(6.6%) |
|||||||||
|
Comfort Suites |
569 |
43,949 |
577 |
44,632 |
(8) |
(683) |
(1.4%) |
(1.5%) |
|||||||||
|
Sleep |
377 |
27,047 |
371 |
26,811 |
6 |
236 |
1.6% |
0.9% |
|||||||||
|
Quality |
1,379 |
110,116 |
1,284 |
104,454 |
95 |
5,662 |
7.4% |
5.4% |
|||||||||
|
Clarion |
175 |
24,449 |
178 |
25,049 |
(3) |
(600) |
(1.7%) |
(2.4%) |
|||||||||
|
Econo Lodge |
856 |
52,978 |
856 |
52,878 |
- |
100 |
0.0% |
0.2% |
|||||||||
|
Rodeway |
513 |
28,880 |
474 |
26,172 |
39 |
2,708 |
8.2% |
10.3% |
|||||||||
|
MainStay |
52 |
3,846 |
45 |
3,568 |
7 |
278 |
15.6% |
7.8% |
|||||||||
|
Suburban |
62 |
6,994 |
65 |
7,198 |
(3) |
(204) |
(4.6%) |
(2.8%) |
|||||||||
|
Ascend Hotel Collection |
112 |
9,455 |
109 |
9,395 |
3 |
60 |
2.8% |
0.6% |
|||||||||
|
Cambria hotel & suites |
25 |
3,113 |
22 |
2,642 |
3 |
471 |
13.6% |
17.8% |
|||||||||
|
Domestic Franchises |
5,276 |
400,372 |
5,221 |
398,661 |
55 |
1,711 |
1.1% |
0.4% |
|||||||||
|
International Franchises |
1,147 |
107,111 |
1,158 |
106,617 |
(11) |
494 |
(0.9%) |
0.5% |
|||||||||
|
Total Franchises |
6,423 |
507,483 |
6,379 |
505,278 |
44 |
2,205 |
0.7% |
0.4% |
|||||||||
|
Exhibit 6 |
|||||||||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
|||||||||||||||||||
|
SUPPLEMENTAL INFORMATION BY BRAND |
|||||||||||||||||||
|
DEVELOPMENT RESULTS -- DOMESTIC NEW HOTEL CONTRACTS |
|||||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||||
|
For the Year Ended December 31, 2015 |
For the Year Ended December 31, 2014 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
37 |
39 |
76 |
31 |
24 |
55 |
19% |
63% |
38% |
||||||||||
|
Comfort Suites |
45 |
6 |
51 |
39 |
1 |
40 |
15% |
500% |
28% |
||||||||||
|
Sleep |
34 |
- |
34 |
36 |
2 |
38 |
(6%) |
(100%) |
(11%) |
||||||||||
|
Quality |
3 |
193 |
196 |
3 |
166 |
169 |
0% |
16% |
16% |
||||||||||
|
Clarion |
- |
12 |
12 |
1 |
28 |
29 |
(100%) |
(57%) |
(59%) |
||||||||||
|
Econo Lodge |
- |
60 |
60 |
3 |
79 |
82 |
(100%) |
(24%) |
(27%) |
||||||||||
|
Rodeway |
- |
104 |
104 |
3 |
76 |
79 |
(100%) |
37% |
32% |
||||||||||
|
MainStay |
27 |
- |
27 |
20 |
3 |
23 |
35% |
(100%) |
17% |
||||||||||
|
Suburban |
1 |
6 |
7 |
4 |
5 |
9 |
(75%) |
20% |
(22%) |
||||||||||
|
Ascend Hotel Collection |
5 |
32 |
37 |
11 |
23 |
34 |
(55%) |
39% |
9% |
||||||||||
|
Cambria hotel & suites |
21 |
5 |
26 |
8 |
- |
8 |
163% |
NM |
225% |
||||||||||
|
Total Domestic System |
173 |
457 |
630 |
159 |
407 |
566 |
9% |
12% |
11% |
||||||||||
|
For the Three Months Ended December 31, 2015 |
For the Three Months Ended December 31, 2014 |
% Change |
|||||||||||||||||
|
New |
New |
New |
|||||||||||||||||
|
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
Construction |
Conversion |
Total |
|||||||||||
|
Comfort Inn |
20 |
11 |
31 |
15 |
13 |
28 |
33% |
(15%) |
11% |
||||||||||
|
Comfort Suites |
27 |
3 |
30 |
28 |
1 |
29 |
(4%) |
200% |
3% |
||||||||||
|
Sleep |
15 |
- |
15 |
15 |
1 |
16 |
0% |
(100%) |
(6%) |
||||||||||
|
Quality |
- |
79 |
79 |
- |
84 |
84 |
NM |
(6%) |
(6%) |
||||||||||
|
Clarion |
- |
5 |
5 |
- |
13 |
13 |
NM |
(62%) |
(62%) |
||||||||||
|
Econo Lodge |
- |
21 |
21 |
2 |
33 |
35 |
(100%) |
(36%) |
(40%) |
||||||||||
|
Rodeway |
- |
47 |
47 |
- |
28 |
28 |
NM |
68% |
68% |
||||||||||
|
MainStay |
11 |
- |
11 |
10 |
2 |
12 |
10% |
(100%) |
(8%) |
||||||||||
|
Suburban |
- |
2 |
2 |
2 |
2 |
4 |
(100%) |
0% |
(50%) |
||||||||||
|
Ascend Hotel Collection |
2 |
10 |
12 |
5 |
12 |
17 |
(60%) |
(17%) |
(29%) |
||||||||||
|
Cambria hotel & suites |
7 |
3 |
10 |
3 |
- |
3 |
133% |
NM |
233% |
||||||||||
|
Total Domestic System |
82 |
181 |
263 |
80 |
189 |
269 |
3% |
(4%) |
(2%) |
||||||||||
|
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 |
||||||||||||||||||||||||
|
December 31, 2015 Units |
December 31, 2014 Units |
|||||||||||||||||||||||
|
Conversion |
New Construction |
Total |
||||||||||||||||||||||
|
Conversion |
New Construction |
Total |
Conversion |
New Construction |
Total |
Units |
% |
Units |
% |
Units |
% |
|||||||||||||
|
Comfort Inn |
38 |
83 |
121 |
36 |
64 |
100 |
2 |
6% |
19 |
30% |
21 |
21% |
||||||||||||
|
Comfort Suites |
3 |
95 |
98 |
- |
75 |
75 |
3 |
NM |
20 |
27% |
23 |
31% |
||||||||||||
|
Sleep Inn |
- |
81 |
81 |
2 |
72 |
74 |
(2) |
(100%) |
9 |
13% |
7 |
9% |
||||||||||||
|
Quality |
53 |
5 |
58 |
52 |
5 |
57 |
1 |
2% |
- |
0% |
1 |
2% |
||||||||||||
|
Clarion |
7 |
2 |
9 |
12 |
2 |
14 |
(5) |
(42%) |
- |
0% |
(5) |
(36%) |
||||||||||||
|
Econo Lodge |
23 |
4 |
27 |
32 |
5 |
37 |
(9) |
(28%) |
(1) |
(20%) |
(10) |
(27%) |
||||||||||||
|
Rodeway |
47 |
2 |
49 |
31 |
4 |
35 |
16 |
52% |
(2) |
(50%) |
14 |
40% |
||||||||||||
|
MainStay |
- |
60 |
60 |
1 |
46 |
47 |
(1) |
(100%) |
14 |
30% |
13 |
28% |
||||||||||||
|
Suburban |
5 |
8 |
13 |
4 |
12 |
16 |
1 |
25% |
(4) |
(33%) |
(3) |
(19%) |
||||||||||||
|
Ascend Hotel Collection |
28 |
19 |
47 |
14 |
20 |
34 |
14 |
100% |
(1) |
(5%) |
13 |
38% |
||||||||||||
|
Cambria hotel & suites |
5 |
38 |
43 |
- |
21 |
21 |
5 |
NM |
17 |
81% |
22 |
105% |
||||||||||||
|
209 |
397 |
606 |
184 |
326 |
510 |
25 |
14% |
71 |
22% |
96 |
19% |
|||||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 8 |
||||||||||||
|
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION |
|||||||||||||
|
(UNAUDITED) |
|||||||||||||
|
CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS |
|||||||||||||
|
(dollar amounts in thousands) |
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||
|
2015 |
2014 |
2015 |
2014 |
||||||||||
|
Franchising Revenues: |
|||||||||||||
|
Total Revenues |
$ 210,951 |
$ 185,402 |
$ 859,878 |
$ 757,970 |
|||||||||
|
Adjustments: |
|||||||||||||
|
Marketing and reservation revenues |
(122,465) |
(103,594) |
(488,763) |
(412,619) |
|||||||||
|
Non-franchising activities |
(1,943) |
(387) |
(4,416) |
(600) |
|||||||||
|
Franchising Revenues |
$ 86,543 |
$ 81,421 |
$ 366,699 |
$ 344,751 |
|||||||||
|
Franchising Margins: |
|||||||||||||
|
Operating Margin: |
|||||||||||||
|
Total Revenues |
$ 210,951 |
$ 185,402 |
$ 859,878 |
$ 757,970 |
|||||||||
|
Operating Income |
$ 47,195 |
$ 46,257 |
$ 225,319 |
$ 214,568 |
|||||||||
|
Operating Margin |
22.4% |
24.9% |
26.2% |
28.3% |
|||||||||
|
Franchising Margin: |
|||||||||||||
|
Franchising Revenues |
$ 86,543 |
$ 81,421 |
$ 366,699 |
$ 344,751 |
|||||||||
|
Operating Income |
$ 47,195 |
$ 46,257 |
$ 225,319 |
$ 214,568 |
|||||||||
|
Non-franchising activities operating loss |
6,722 |
4,271 |
21,529 |
17,065 |
|||||||||
|
$ 53,917 |
$ 50,528 |
$ 246,848 |
$ 231,633 |
||||||||||
|
Franchising Margins |
62.3% |
62.1% |
67.3% |
67.2% |
|||||||||
|
CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES |
|||||||||||||
|
(dollar amounts in thousands) |
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||
|
2015 |
2014 |
2015 |
2014 |
||||||||||
|
Total Selling, General and Administrative Expenses |
$ 38,542 |
$ 33,089 |
$ 134,254 |
$ 121,418 |
|||||||||
|
Non-Franchising Activities |
(7,746) |
(4,336) |
(23,376) |
(16,658) |
|||||||||
|
Franchising Selling, General and Administration Expenses |
$ 30,796 |
$ 28,753 |
$ 110,878 |
$ 104,760 |
|||||||||
|
CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION ("EBITDA") |
|||||||||||||
|
(dollar amounts in thousands) |
|||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||
|
2015 |
2014 |
2015 |
2014 |
||||||||||
|
Income from continuing operations, net of income taxes |
$ 29,203 |
$ 25,309 |
$ 128,029 |
$ 121,473 |
|||||||||
|
Income taxes |
8,601 |
10,729 |
55,956 |
52,285 |
|||||||||
|
Interest expense |
10,776 |
10,110 |
42,833 |
41,486 |
|||||||||
|
Interest income |
(598) |
(556) |
(1,580) |
(1,761) |
|||||||||
|
Other (gains) and losses |
(581) |
585 |
(820) |
427 |
|||||||||
|
Equity in net (income) loss of affiliates |
(206) |
80 |
901 |
658 |
|||||||||
|
Depreciation and amortization |
2,749 |
2,462 |
11,542 |
9,365 |
|||||||||
|
EBITDA |
$ 49,944 |
$ 48,719 |
$ 236,861 |
$ 223,933 |
|||||||||
|
Franchising |
$ 55,747 |
$ 52,668 |
$ 255,821 |
$ 239,991 |
|||||||||
|
Non-Franchising activities |
(5,803) |
(3,949) |
(18,960) |
(16,058) |
|||||||||
|
$ 49,944 |
$ 48,719 |
$ 236,861 |
$ 223,933 |
||||||||||
|
CHOICE HOTELS INTERNATIONAL, INC. |
Exhibit 9 |
||||||||
|
DISCONTINUED OPERATIONS |
|||||||||
|
(UNAUDITED) |
|||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||
|
(In thousands) |
2015 |
2014 |
2015 |
2014 |
|||||
|
REVENUES: |
|||||||||
|
Hotel operations |
$ - |
$ - |
$ - |
$ 801 |
|||||
|
Total revenues |
- |
- |
- |
801 |
|||||
|
OPERATING EXPENSES: |
|||||||||
|
Hotel operations |
- |
43 |
- |
927 |
|||||
|
Total operating expenses |
- |
43 |
- |
927 |
|||||
|
Operating income (loss) |
- |
(43) |
- |
(126) |
|||||
|
Gain (loss) on disposal of discontinued operations |
- |
4 |
- |
2,807 |
|||||
|
Income (loss) from discontinued operations before income taxes |
- |
(39) |
- |
2,681 |
|||||
|
Income tax (benefit) |
- |
(15) |
- |
994 |
|||||
|
Income (loss) from discontinued operations |
$ - |
$ (24) |
$ - |
$ 1,687 |
|||||
Logo - http://photos.prnewswire.com/prnh/20140807/134515
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
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