SILVER SPRING, Md., Feb. 20, 2012--Choice Hotels International,
Inc., (NYSE: CHH) today reported the following highlights for fourth
quarter and full year 2011:
Full Year Results
- Adjusted diluted earnings per share ("EPS") for full year
2011 were $1.92 compared to $1.82 for full year 2010. Diluted EPS were $1.85 for 2011 compared to $1.80 for 2010. Adjusted diluted EPS for full
year 2011 and 2010 exclude certain special items, as described below,
totaling $0.07 and $0.02, respectively.
- Excluding special items, adjusted earnings before interest,
taxes, depreciation and amortization ("EBITDA") increased 8% to $184.3 million for the year ended December 31, 2011, compared to $170.8 million for the year ended December 31, 2010. Operating income increased
7% from $160.8 million for the year
ended December 31, 2010 to $171.9 million for same period of 2011.
- Franchising revenues increased 9% from $262.8 million for the year ended December 31, 2010 to $285.4
million for the same period of 2011. Total revenues increased 7%
to $638.8 million for the year ended December 31, 2011 compared to the same period
of 2010.
- The effective income tax rate for the year ended December 31, 2011 was 30.1% compared to 32.1%
for the same period of the prior year. Excluding discrete items,
totaling $5.1 million and $3.2 million recorded during the years ended December 31, 2011 and 2010, the company's
effective income tax rate was approximately 33.4% and 34.2%,
respectively.
- Worldwide unit growth increased 0.6 percent from December 31, 2010 comprised of domestic and
international unit growth of 0.2 percent and 2.4 percent, respectively.
- Domestic system-wide revenue per available room ("RevPAR")
increased 6.2% for full year 2011 compared to the same period of 2010
as occupancy and average daily rates increased 220 basis points and 1.9
percent, respectively.
- The effective royalty rate increased 3 basis points to
4.32% for the year ended December 31, 2011
compared to 4.29% for the same period of the prior year.
- The company executed 332 new domestic hotel franchise
contracts for the year ended December 31, 2011
compared to 357 new domestic hotel franchise contracts in the prior
year.
- The number of worldwide hotels under construction, awaiting
conversion or approved for development at December
31, 2011 was 490 hotels representing 39,675 rooms;
- During the year ended December 31,
2011, the company purchased approximately 1.6 million shares of
its common stock at an average price of $31.59
for a total cost of $51.0 million under
the share repurchase program.
Fourth Quarter Results
- Adjusted EPS for fourth quarter 2011 increased 10% to $0.46 compared to $0.42
for the same period of the prior year. Diluted EPS were $0.42 for the fourth quarter of 2011 compared
to $0.40 for the same period of 2010.
Adjusted diluted EPS for fourth quarter 2011 and 2010 exclude certain
special items, as described below, totaling $0.04
and $0.02, respectively.
- Excluding special items, adjusted EBITDA were $44.3 million for the three months ended December 31, 2011, compared to $41.5 million for the same period of 2010.
Operating income for the three months ended December
31, 2011 and 2010 was $38.7 million
and $38.4 million, respectively.
- Franchising revenues increased 10% from $66.9 million for the three months ended December 31, 2010 to $73.9
million for the same period of 2011. Total revenues for the
three months ended December 31, 2011
increased 7% compared to the same period of 2010.
- Domestic system-wide RevPAR increased 7.8% for the fourth
quarter of 2011 compared to the same period of 2010 as a result of
occupancy rates increasing 260 basis points and a 2.7% increase in
average daily rates.
- The company executed 128 new domestic hotel franchise
contracts for the three months ended December
31, 2011 compared to 161 contracts executed in the same period
of the prior year.
"We are pleased with the continued strong gains we achieved in
domestic RevPAR during the fourth quarter and the growth of our global
franchise system," said Stephen P. Joyce,
president and chief executive officer. "While the near term franchise
sales environment remains challenging, we believe that our well-known
diversified brands will continue to resonate with developers and hotel
owners due to our focus on owners' property-level profitability and
return on investment. We remain focused on prudently managing our
brands, gaining operating efficiencies and returning value to our
shareholders."
Special Items
During the three months and year ended December
31, 2011, the company recorded employee termination benefit
charges included in selling, general and administration ("SG&A")
expenses of approximately $3.6 million
and $4.4 million, respectively. In
addition, during the year ended December 31,
2011, the company reduced the carrying amount of a parcel of
land held for sale resulting in a loss of $1.8
million included in other gains and losses. These special items
represent diluted EPS of $0.04 and $0.07 for the three months and year ended December 31, 2011, respectively.
During the three months and year ended December
31, 2010, the company recorded employee termination benefit
charges in SG&A of approximately $1.2
million and $1.7 million,
respectively. These special items represent diluted EPS of $0.02 for both the three months and year ended
December 31, 2010.
Outlook for 2012
The company's first quarter 2012 diluted EPS is expected to be
at least $0.30. The company expects
full-year 2012 diluted EPS to range between $1.99
and $2.04. EBITDA for full-year 2012 are expected to range
between $199 million and $203 million.
These estimates include the following assumptions:
- The company expects net domestic unit growth to be
relatively flat in 2012;
- RevPAR is expected to increase approximately 8% for first
quarter of 2012 and increase between approximately 4% and 6% for
full-year 2012;
- The effective royalty rate is expected to increase 1 basis
point for full-year 2012;
- During the fourth quarter of 2011, the company implemented
measures to increase its productivity and streamline services that are
projected to result in future cost savings. As a result of these
measures as well as expected reduction of certain variable incentive
compensation and employee termination benefits, the company's 2012
SG&A is projected to decline approximately $15
million from the $106.4 million
incurred during the year ended December 31, 2011.
- All figures assume the existing share count and an
effective tax rate of 34.5% for the first quarter and full-year 2012.
Use of Free Cash Flow
The company has historically used its free cash flow (cash
flow from operations less capital expenditures) to return value to
shareholders, primarily through share repurchases and dividends.
For the year ended December 31, 2011
the company paid $43.7 million of cash
dividends to shareholders. The current quarterly dividend rate per
common share is $0.185, subject to
declaration by our board of directors.
During the year ended December 31, 2011,
the company purchased approximately 1.6 million shares of its common
stock at an average price of $31.59 for
a total cost of $51.0 million under the
share repurchase program. Subsequent to December
31, 2011 and through February 20, 2012,
the company repurchased an additional 0.2 million shares for a total
cost of $5.9 million at an average price
of $36.49 and has authorization to
purchase up to an additional 1.8 million shares under this program. We
expect to continue making repurchases in the open market and through
privately negotiated transactions, subject to market and other
conditions. No minimum number of share repurchases has been fixed.
Since Choice announced its stock repurchase program on June 25, 1998, the company has repurchased
44.8 million shares of its common stock for a total cost of $1.1 billion through December
31, 2011. Considering the effect of a two-for-one stock split in
October 2005, the company had
repurchased 77.8 million shares through December
31, 2011 under the share repurchase program at an average price
of $13.73 per share.
Our board of directors previously authorized us to enter into
programs which permit us to offer financing, investment and guaranty
support to qualified franchisees as well as to acquire and resell real
estate to incent franchise development for certain brands in top
markets. Over the next several years, we expect to continue to
opportunistically deploy capital pursuant to these programs to promote
growth of our emerging brands. The amount and timing of the investment
in these programs will be dependent on market and other conditions.
Notwithstanding these programs, the company expects to continue to
return value to its shareholders through a combination of share
repurchases and dividends, subject to market and other conditions.
Conference Call
Choice will conduct a conference call on Tuesday, February 21, 2012 at 9:30 a.m. EST to discuss the company's fourth
quarter and full-year 2011 results. The dial-in number to listen to the
call is 1-866-383-7989, and the access code is 60035894. International
callers should dial 1-617-597-5328 and enter the access code 60035894.
The conference call also will be Webcast simultaneously via the
company's Web site, www.choicehotels.com.
Interested investors and other parties wishing to access the call via
the Webcast should go to the Web site and click on the Investor Info
link. The Investor Information page will feature a conference call
microphone icon to access the call.
The call will be recorded and available for replay beginning
at 11:30 a.m. EST on Tuesday, February 21, 2012 through Wednesday, March 28, 2012 by calling
1-888-286-8010 and entering access code 88211651. The international
dial-in number for the replay is 617-801-6888, access code 88211651. In
addition, the call will be archived and available on www.choicehotels.com via the
Investor Info link.
About Choice Hotels
Choice Hotels International, Inc. franchises more than 6,100
hotels, representing more than 495,000 rooms, in the United States and more than 30 other
countries and territories. As of December 31,
2011, more than 400 hotels were under construction, awaiting
conversion or approved for development in the
United States, representing more than 30,000 rooms, and
approximately 80 hotels, representing approximately 7,000 rooms, were
under construction, awaiting conversion or approved for development in
20 other countries and territories. The company's Comfort Inn, Comfort
Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay Suites,
Suburban Extended Stay Hotel, Econo Lodge and Rodeway Inn brands serve
guests worldwide. In addition, via its Ascend Collection membership
program, travelers in the United States,
Canada and the Caribbean have upscale lodging options at
historic, boutique and unique hotels.
Additional corporate information may be found on the Choice
Hotels International, Inc. web site, which may be accessed at www.choicehotels.com.
Forward-Looking Statements
Certain matters discussed in this press release constitute
forward-looking statements within the meaning of the federal securities
law. Generally, our use of words such as "expect," "estimate,"
"believe," "anticipate," "will," "forecast," "plan"," project,"
"assume" or similar words of futurity identify statements that are
forward-looking and that we intend to be included within the Safe
Harbor protections provided by Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements are based on management's current beliefs,
assumptions and expectations regarding future events, which in turn are
based on information currently available to management. Such statements
may relate to projections of the company's revenue, earnings and other
financial and operational measures, company debt levels, payment of
stock dividends, and future operations, among other matters. We caution
you not to place undue reliance on any such forward-looking statements.
Forward-looking statements do not guarantee future performance and
involve known and unknown risks, uncertainties and other factors.
Several factors could cause actual results, performance or
achievements of the company to differ materially from those expressed
in or contemplated by the forward-looking statements. Such risks
include, but are not limited to, changes to general, domestic and
foreign economic conditions; operating risks common in the lodging and
franchising industries; changes to the desirability of our brands as
viewed by hotel operators and customers; changes to the terms or
termination of our contracts with franchisees; our ability to keep pace
with improvements in technology utilized for reservations systems and
other operating systems; fluctuations in the supply and demand for
hotels rooms; and our ability to manage effectively our indebtedness.
These and other risk factors are discussed in detail in the Risk
Factors section of the company's Form 10-K for the year ended December 31, 2010, filed with the Securities
and Exchange Commission on March 1,
2011. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Statement Concerning Non-GAAP Financial Measurements
Adjusted diluted EPS, adjusted EBITDA, adjusted SG&A,
franchising revenues and adjusted franchising margins are non-GAAP
financial measurements. This information should not be considered as an
alternative to any measure of performance as promulgated under
accounting principles generally accepted in the
United States ("GAAP"), such as diluted earnings per share,
operating income, total revenues and operating margins. The company's
calculation of these measurements may be different from the
calculations used by other companies and therefore comparability may be
limited. The company has included an exhibit accompanying this release
that reconciles these measures to the comparable GAAP measurement. We
discuss management's reasons for reporting these non-GAAP measures
below.
Earnings Before Interest, Taxes, Depreciation and
Amortization: EBITDA reflects earnings excluding the impact of
interest expense, tax expense, depreciation and amortization. Our
management considers EBITDA to be an indicator of operating performance
because it can be used to measure our ability to service debt, fund
capital expenditures, and expand our business. EBITDA is a commonly
used measure of performance in our industry. In addition, it is used by
analysts, lenders, investors and others, as well as by us, to
facilitate comparisons between the company and its competitors because
it excludes certain items that can vary widely across different
industries or among companies within the same industry.
Franchising Revenues and Margins: The company reports
franchising revenues and margins which exclude marketing and
reservation revenues and hotel operations. Marketing and reservation
activities are excluded from revenues and operating margins since the
company is contractually required by its franchise agreements to use
these fees collected for marketing and reservation activities.
Cumulative reservation and marketing system fees not expended are
recorded as a payable on the company's financial statements and are
carried over to the next fiscal year and expended in accordance with
the franchise agreements. Cumulative marketing and reservation
expenditures in excess of system fees collected for marketing and
reservation activities are recorded as a receivable on the company's
financial statements. In addition, the company has the contractual
authority to require that the franchisees in the system at any given
point repay the company for any deficits related to marketing and
reservation activities. Hotel operations are excluded since they do not
reflect the most accurate measure of the company's core franchising
business. These non-GAAP measures are a commonly used measure of
performance in our industry and facilitate comparisons between the
company and its competitors.
Adjusted Diluted EPS, Adjusted EBITDA, Adjusted SG&A
and Adjusted Franchising Margins: The company's management also
uses adjusted diluted EPS, adjusted EBITDA, adjusted SG&A and
adjusted franchising margins which exclude employee termination
benefits for the years ended December 31, 2011
and 2010 as well as a reduction in the carrying amount of land held for
sale during the year ended December 31, 2011.
The company utilizes these non-GAAP measures to enable investors to
perform meaningful comparisons of past, present and future operating
results and as a means to emphasize the results of on-going operations.
Choice Hotels, Choice Hotels International, Comfort Inn,
Comfort Suites, Quality, Sleep Inn, Clarion, Cambria Suites, MainStay
Suites, Suburban Extended Stay Hotel, Econo Lodge, Rodeway Inn and
Ascend Collection are proprietary trademarks and service marks
of Choice Hotels International.
2012 Choice Hotels International, Inc. All rights reserved.
Choice
Hotels International, Inc.
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Exhibit
1
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Consolidated
Statements of Income
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(Unaudited)
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Three
Months Ended December 31,
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Year
Ended December 31,
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Variance
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Variance
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2011
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2010
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$
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%
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2011
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2010
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$
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%
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(In
thousands, except per share amounts)
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REVENUES:
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Royalty
fees
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$
63,344
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$
59,067
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$ 4,277
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7%
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$
247,240
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$
230,096
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$
17,144
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7%
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Initial
franchise and relicensing fees
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4,889
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2,758
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2,131
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77%
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13,557
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9,295
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4,262
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46%
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Procurement
services
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3,913
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3,595
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318
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9%
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17,619
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17,207
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412
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2%
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Marketing
and reservation
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90,844
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87,150
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3,694
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4%
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349,036
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329,246
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19,790
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6%
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Hotel
operations
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1,183
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987
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196
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20%
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4,356
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4,031
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325
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8%
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Other
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1,717
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1,449
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268
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18%
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6,985
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6,201
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784
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13%
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Total
revenues
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165,890
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155,006
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10,884
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7%
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638,793
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596,076
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42,717
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7%
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OPERATING
EXPENSES:
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Selling,
general and administrative
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33,463
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26,744
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6,719
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25%
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106,404
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94,540
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11,864
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13%
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Depreciation
and amortization
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2,048
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1,872
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176
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9%
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8,024
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8,342
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(318)
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(4%)
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Marketing
and reservation
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90,844
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87,150
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3,694
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4%
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349,036
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329,246
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19,790
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6%
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Hotel
operations
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873
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799
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74
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9%
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3,466
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3,186
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280
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9%
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Total
operating expenses
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127,228
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116,565
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10,663
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9%
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466,930
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435,314
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31,616
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7%
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Operating
income
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38,662
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38,441
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221
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1%
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171,863
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160,762
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11,101
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7%
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OTHER
INCOME AND EXPENSES:
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Interest
expense
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3,220
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3,520
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(300)
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(9%)
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12,939
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6,680
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6,259
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94%
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Interest
income
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(369)
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(192)
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(177)
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92%
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(1,306)
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(548)
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(758)
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138%
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Other
(gains) and losses
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(1,236)
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(1,066)
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(170)
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16%
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2,442
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(2,355)
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4,797
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(204%)
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Equity
in net income of affiliates
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(7)
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(336)
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329
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(98%)
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(269)
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(1,226)
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957
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(78%)
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Total
other income and expenses, net
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1,608
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1,926
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(318)
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(17%)
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13,806
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2,551
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11,255
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441%
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Income
before income taxes
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37,054
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36,515
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539
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1%
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158,057
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158,211
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(154)
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(0%)
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Income
taxes
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12,268
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12,372
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(104)
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(1%)
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47,661
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50,770
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(3,109)
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(6%)
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Net
income
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$
24,786
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$
24,143
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$ 643
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3%
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$
110,396
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$
107,441
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$ 2,955
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3%
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Basic
earnings per share
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$ 0.42
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$ 0.41
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$ 0.01
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2%
|
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$ 1.86
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$ 1.80
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$ 0.06
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3%
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Diluted
earnings per share
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$ 0.42
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$ 0.40
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$ 0.02
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5%
|
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$ 1.85
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$ 1.80
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$ 0.05
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3%
|
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Choice
Hotels International, Inc.
|
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Exhibit
2
|
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Consolidated
Balance Sheets
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share amounts)
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
$
107,057
|
|
$
91,259
|
|
Accounts
receivable, net
|
|
|
53,012
|
|
47,638
|
|
Investments,
employee benefit plans, at fair value
|
|
12,094
|
|
-
|
|
Deferred
income taxes
|
|
|
-
|
|
429
|
|
Other
current assets
|
|
|
|
22,633
|
|
24,256
|
|
|
Total
current assets
|
|
|
194,796
|
|
163,582
|
|
|
|
|
|
|
|
|
|
|
Fixed
assets and intangibles, net
|
|
|
135,252
|
|
142,528
|
|
Receivable
-- marketing and reservation fees
|
|
54,014
|
|
42,507
|
|
Investments,
employee benefit plans, at fair value
|
|
11,678
|
|
23,365
|
|
Other
assets
|
|
|
|
51,949
|
|
39,740
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
447,689
|
|
$
411,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
|
$
92,240
|
|
$
88,986
|
|
Deferred
revenue
|
|
|
|
68,825
|
|
67,322
|
|
Revolving
credit facility
|
|
|
-
|
|
200
|
|
Deferred
compensation & retirement plan obligations
|
|
18,935
|
|
2,552
|
|
Current
portion of long-term debt
|
|
|
673
|
|
420
|
|
Other
current liabilities
|
|
|
3,892
|
|
5,778
|
|
|
Total
current liabilities
|
|
|
184,565
|
|
165,258
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
252,032
|
|
251,554
|
|
Deferred
compensation & retirement plan obligations
|
|
20,593
|
|
35,707
|
|
Other
liabilities
|
|
|
|
16,060
|
|
17,274
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
473,250
|
|
469,793
|
|
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value
|
|
|
583
|
|
596
|
|
Additional
paid-in-capital
|
|
|
102,665
|
|
92,774
|
|
Accumulated
other comprehensive loss
|
|
|
(6,801)
|
|
(7,192)
|
|
Treasury
stock, at cost
|
|
|
(916,955)
|
|
(872,306)
|
|
Retained
earnings
|
|
|
|
794,947
|
|
728,057
|
|
|
Total
shareholders' deficit
|
|
|
(25,561)
|
|
(58,071)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' deficit
|
$
447,689
|
|
$
411,722
|
|
|
|
|
|
|
|
|
|
Choice
Hotels International, Inc.
|
|
|
Exhibit
3
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Year
Ended December 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
110,396
|
|
$
107,441
|
|
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided
|
|
|
|
|
by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
8,024
|
|
8,342
|
|
Provision for bad debts
|
2,160
|
|
3,547
|
|
Non-cash stock compensation and other charges
|
14,511
|
|
9,304
|
|
Non-cash interest and other (income) loss
|
2,208
|
|
(1,711)
|
|
Dividends received from equity method investments
|
1,139
|
|
1,155
|
|
Equity in net income of affiliates
|
(269)
|
|
(1,226)
|
|
|
|
|
|
|
Changes
in assets and liabilities, net of acquisitions:
|
|
|
|
|
Receivables
|
(7,785)
|
|
(9,229)
|
|
Receivable - marketing and reservation fees, net
|
623
|
|
4,654
|
|
Accounts payable
|
(1,851)
|
|
5,744
|
|
Accrued expenses
|
6,346
|
|
10,630
|
|
Income taxes payable/receivable
|
(4,562)
|
|
(1,417)
|
|
Deferred income taxes
|
5,514
|
|
(2,381)
|
|
Deferred revenue
|
1,523
|
|
15,413
|
|
Other
assets
|
(3,162)
|
|
(12,705)
|
|
Other
liabilities
|
29
|
|
7,374
|
|
|
|
|
|
|
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
134,844
|
|
144,935
|
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Investment
in property and equipment
|
(10,924)
|
|
(24,368)
|
|
Equity
method investments
|
(5,000)
|
|
-
|
|
Issuance
of notes receivable
|
(12,766)
|
|
(11,786)
|
|
Collections
of notes receivable
|
4,754
|
|
5,083
|
|
Proceeds
from sale of assets
|
1,654
|
|
-
|
|
Purchases
of investments, employee benefit plans
|
(1,602)
|
|
(1,948)
|
|
Proceeds
from sales of investments, employee benefit plans
|
644
|
|
1,649
|
|
Acquisitions,
net of cash acquired
|
-
|
|
(466)
|
|
Other
items, net
|
(564)
|
|
(319)
|
|
|
|
|
|
|
NET
CASH USED IN INVESTING ACTIVITIES
|
(23,804)
|
|
(32,155)
|
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds
from the issuance of long-term debt
|
75
|
|
247,733
|
|
Net
repayments pursuant to revolving credit facilities
|
(200)
|
|
(277,500)
|
|
Principal
payments on long-term debt
|
(297)
|
|
(25)
|
|
Settlement
of forward starting interest rate swap agreement
|
-
|
|
(8,663)
|
|
Debt
issuance costs
|
(2,356)
|
|
(800)
|
|
Purchase
of treasury stock
|
(53,617)
|
|
(11,212)
|
|
Excess
tax benefits from stock-based compensation
|
1,227
|
|
625
|
|
Dividends
paid
|
(43,747)
|
|
(43,808)
|
|
Proceeds
from exercise of stock options
|
3,845
|
|
2,457
|
|
|
|
|
|
|
NET
CASH USED IN FINANCING ACTIVITIES
|
(95,070)
|
|
(91,193)
|
|
|
|
|
|
|
Net
change in cash and cash equivalents
|
15,970
|
|
21,587
|
|
Effect
of foreign exchange rate changes on cash and cash equivalents
|
(172)
|
|
1,802
|
|
Cash
and cash equivalents at beginning of period
|
91,259
|
|
67,870
|
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
107,057
|
|
$
91,259
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
4
|
|
SUPPLEMENTAL OPERATING INFORMATION
|
|
|
DOMESTIC
HOTEL SYSTEM
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Year Ended December 31, 2011*
|
|
For
the Year Ended December 31, 2010*
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
|
|
|
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
$ 79.41
|
|
57.5%
|
|
$ 45.62
|
|
$ 77.21
|
|
55.6%
|
|
$ 42.93
|
|
2.8%
|
|
190
|
bps
|
|
6.3%
|
|
|
|
Comfort
Suites
|
|
83.72
|
|
58.6%
|
|
49.09
|
|
82.48
|
|
55.2%
|
|
45.53
|
|
1.5%
|
|
340
|
bps
|
|
7.8%
|
|
|
|
Sleep
|
|
69.96
|
|
53.6%
|
|
37.49
|
|
68.82
|
|
51.6%
|
|
35.52
|
|
1.7%
|
|
200
|
bps
|
|
5.5%
|
|
|
|
Quality
|
|
67.75
|
|
50.0%
|
|
33.86
|
|
66.81
|
|
48.1%
|
|
32.11
|
|
1.4%
|
|
190
|
bps
|
|
5.5%
|
|
|
|
Clarion
|
|
73.89
|
|
46.9%
|
|
34.64
|
|
75.15
|
|
43.7%
|
|
32.86
|
|
(1.7%)
|
|
320
|
bps
|
|
5.4%
|
|
|
|
Econo
Lodge
|
|
54.71
|
|
47.5%
|
|
25.96
|
|
54.10
|
|
45.8%
|
|
24.80
|
|
1.1%
|
|
170
|
bps
|
|
4.7%
|
|
|
|
Rodeway
|
|
51.87
|
|
48.7%
|
|
25.27
|
|
51.07
|
|
45.8%
|
|
23.38
|
|
1.6%
|
|
290
|
bps
|
|
8.1%
|
|
|
|
MainStay
|
|
66.16
|
|
67.7%
|
|
44.80
|
|
65.60
|
|
63.6%
|
|
41.71
|
|
0.9%
|
|
410
|
bps
|
|
7.4%
|
|
|
|
Suburban
|
|
40.26
|
|
67.5%
|
|
27.15
|
|
39.23
|
|
63.8%
|
|
25.03
|
|
2.6%
|
|
370
|
bps
|
|
8.5%
|
|
|
|
Ascend
Collection
|
|
113.59
|
|
60.3%
|
|
68.44
|
|
112.50
|
|
57.6%
|
|
64.81
|
|
1.0%
|
|
270
|
bps
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 71.83
|
|
53.5%
|
|
$ 38.44
|
|
$ 70.50
|
|
51.3%
|
|
$ 36.18
|
|
1.9%
|
|
220
|
bps
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Operating statistics represent hotel operations from December through
November
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended December 31, 2011*
|
|
For
the Three Months Ended December 31, 2010*
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
|
|
|
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
$ 79.92
|
|
58.8%
|
|
$ 46.98
|
|
$ 77.36
|
|
56.3%
|
|
$ 43.54
|
|
3.3%
|
|
250
|
bps
|
|
7.9%
|
|
|
|
Comfort
Suites
|
|
83.13
|
|
59.2%
|
|
49.23
|
|
81.17
|
|
55.4%
|
|
44.96
|
|
2.4%
|
|
380
|
bps
|
|
9.5%
|
|
|
|
Sleep
|
|
70.06
|
|
54.0%
|
|
37.80
|
|
68.47
|
|
51.2%
|
|
35.04
|
|
2.3%
|
|
280
|
bps
|
|
7.9%
|
|
|
|
Quality
|
|
67.17
|
|
50.2%
|
|
33.74
|
|
65.35
|
|
48.2%
|
|
31.52
|
|
2.8%
|
|
200
|
bps
|
|
7.0%
|
|
|
|
Clarion
|
|
74.27
|
|
47.6%
|
|
35.32
|
|
74.05
|
|
44.9%
|
|
33.23
|
|
0.3%
|
|
270
|
bps
|
|
6.3%
|
|
|
|
Econo
Lodge
|
|
54.62
|
|
48.3%
|
|
26.37
|
|
53.59
|
|
46.2%
|
|
24.77
|
|
1.9%
|
|
210
|
bps
|
|
6.5%
|
|
|
|
Rodeway
|
|
51.12
|
|
49.1%
|
|
25.11
|
|
50.00
|
|
45.2%
|
|
22.60
|
|
2.2%
|
|
390
|
bps
|
|
11.1%
|
|
|
|
MainStay
|
|
66.12
|
|
69.7%
|
|
46.06
|
|
64.30
|
|
63.1%
|
|
40.56
|
|
2.8%
|
|
660
|
bps
|
|
13.6%
|
|
|
|
Suburban
|
|
40.31
|
|
66.6%
|
|
26.84
|
|
39.20
|
|
62.5%
|
|
24.50
|
|
2.8%
|
|
410
|
bps
|
|
9.6%
|
|
|
|
Ascend
Collection
|
|
122.22
|
|
61.0%
|
|
74.56
|
|
127.73
|
|
60.4%
|
|
77.12
|
|
(4.3%)
|
|
60
|
bps
|
|
(3.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 71.98
|
|
54.2%
|
|
$ 39.03
|
|
$ 70.09
|
|
51.6%
|
|
$ 36.19
|
|
2.7%
|
|
260
|
bps
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Operating statistics represent hotel operations from September through
November
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Quarter Ended
|
|
|
|
For
the Year Ended
|
|
|
|
|
12/31/2011
|
|
12/31/2010
|
|
|
|
12/31/2011
|
|
12/31/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide
effective royalty rate
|
|
4.31%
|
|
4.31%
|
|
|
|
4.32%
|
|
4.29%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
5
|
|
SUPPLEMENTAL
HOTEL AND ROOM SUPPLY DATA
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, 2011
|
|
December
31, 2010
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
1,399
|
|
109,330
|
|
1,435
|
|
112,169
|
|
(36)
|
|
(2,839)
|
|
(2.5%)
|
|
(2.5%)
|
|
|
Comfort
Suites
|
|
616
|
|
47,738
|
|
623
|
|
48,246
|
|
(7)
|
|
(508)
|
|
(1.1%)
|
|
(1.1%)
|
|
|
Sleep
|
|
394
|
|
28,568
|
|
398
|
|
28,957
|
|
(4)
|
|
(389)
|
|
(1.0%)
|
|
(1.3%)
|
|
|
Quality
|
|
1,047
|
|
91,502
|
|
1,012
|
|
89,185
|
|
35
|
|
2,317
|
|
3.5%
|
|
2.6%
|
|
|
Clarion
|
|
189
|
|
27,527
|
|
192
|
|
28,711
|
|
(3)
|
|
(1,184)
|
|
(1.6%)
|
|
(4.1%)
|
|
|
Econo
Lodge
|
|
797
|
|
49,483
|
|
784
|
|
48,728
|
|
13
|
|
755
|
|
1.7%
|
|
1.5%
|
|
|
Rodeway
|
|
388
|
|
21,627
|
|
387
|
|
21,261
|
|
1
|
|
366
|
|
0.3%
|
|
1.7%
|
|
|
MainStay
|
|
40
|
|
3,093
|
|
37
|
|
2,868
|
|
3
|
|
225
|
|
8.1%
|
|
7.8%
|
|
|
Suburban
|
|
60
|
|
7,126
|
|
64
|
|
7,685
|
|
(4)
|
|
(559)
|
|
(6.3%)
|
|
(7.3%)
|
|
|
Ascend
Collection
|
|
52
|
|
4,617
|
|
38
|
|
3,025
|
|
14
|
|
1,592
|
|
36.8%
|
|
52.6%
|
|
|
Cambria
Suites
|
|
19
|
|
2,215
|
|
23
|
|
2,700
|
|
(4)
|
|
(485)
|
|
(17.4%)
|
|
(18.0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Franchises
|
|
5,001
|
|
392,826
|
|
4,993
|
|
393,535
|
|
8
|
|
(709)
|
|
0.2%
|
|
(0.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Franchises
|
|
1,177
|
|
104,379
|
|
1,149
|
|
101,610
|
|
28
|
|
2,769
|
|
2.4%
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Franchises
|
|
6,178
|
|
497,205
|
|
6,142
|
|
495,145
|
|
36
|
|
2,060
|
|
0.6%
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
6
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
|
SUPPLEMENTAL
INFORMATION BY BRAND
|
|
DEVELOPMENT
RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Year Ended December 31, 2011
|
|
For
the Year Ended December 31, 2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
12
|
|
46
|
|
58
|
|
7
|
|
32
|
|
39
|
|
71%
|
|
44%
|
|
49%
|
|
Comfort
Suites
|
|
12
|
|
4
|
|
16
|
|
21
|
|
2
|
|
23
|
|
(43%)
|
|
100%
|
|
(30%)
|
|
Sleep
|
|
9
|
|
2
|
|
11
|
|
9
|
|
1
|
|
10
|
|
0%
|
|
100%
|
|
10%
|
|
Quality
|
|
-
|
|
80
|
|
80
|
|
1
|
|
104
|
|
105
|
|
(100%)
|
|
(23%)
|
|
(24%)
|
|
Clarion
|
|
-
|
|
19
|
|
19
|
|
-
|
|
37
|
|
37
|
|
NM
|
|
(49%)
|
|
(49%)
|
|
Econo
Lodge
|
|
1
|
|
56
|
|
57
|
|
-
|
|
67
|
|
67
|
|
NM
|
|
(16%)
|
|
(15%)
|
|
Rodeway
|
|
-
|
|
49
|
|
49
|
|
1
|
|
39
|
|
40
|
|
(100%)
|
|
26%
|
|
23%
|
|
MainStay
|
|
6
|
|
3
|
|
9
|
|
8
|
|
2
|
|
10
|
|
(25%)
|
|
50%
|
|
(10%)
|
|
Suburban
|
|
5
|
|
4
|
|
9
|
|
5
|
|
1
|
|
6
|
|
0%
|
|
300%
|
|
50%
|
|
Ascend
Collection
|
|
2
|
|
14
|
|
16
|
|
1
|
|
13
|
|
14
|
|
100%
|
|
8%
|
|
14%
|
|
Cambria
Suites
|
|
8
|
|
-
|
|
8
|
|
6
|
|
-
|
|
6
|
|
33%
|
|
NM
|
|
33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic System
|
|
55
|
|
277
|
|
332
|
|
59
|
|
298
|
|
357
|
|
(7%)
|
|
(7%)
|
|
(7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended December 31, 2011
|
|
For
the Three Months Ended December 31, 2010
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
6
|
|
18
|
|
24
|
|
3
|
|
10
|
|
13
|
|
100%
|
|
80%
|
|
85%
|
|
Comfort
Suites
|
|
5
|
|
-
|
|
5
|
|
8
|
|
1
|
|
9
|
|
(38%)
|
|
(100%)
|
|
(44%)
|
|
Sleep
|
|
3
|
|
1
|
|
4
|
|
6
|
|
1
|
|
7
|
|
(50%)
|
|
0%
|
|
(43%)
|
|
Quality
|
|
-
|
|
31
|
|
31
|
|
-
|
|
50
|
|
50
|
|
NM
|
|
(38%)
|
|
(38%)
|
|
Clarion
|
|
-
|
|
7
|
|
7
|
|
-
|
|
20
|
|
20
|
|
NM
|
|
(65%)
|
|
(65%)
|
|
Econo
Lodge
|
|
1
|
|
20
|
|
21
|
|
-
|
|
29
|
|
29
|
|
NM
|
|
(31%)
|
|
(28%)
|
|
Rodeway
|
|
-
|
|
17
|
|
17
|
|
-
|
|
13
|
|
13
|
|
NM
|
|
31%
|
|
31%
|
|
MainStay
|
|
5
|
|
-
|
|
5
|
|
4
|
|
2
|
|
6
|
|
25%
|
|
(100%)
|
|
(17%)
|
|
Suburban
|
|
3
|
|
2
|
|
5
|
|
4
|
|
1
|
|
5
|
|
(25%)
|
|
100%
|
|
0%
|
|
Ascend
Collection
|
|
-
|
|
5
|
|
5
|
|
-
|
|
8
|
|
8
|
|
NM
|
|
(38%)
|
|
(38%)
|
|
Cambria
Suites
|
|
4
|
|
-
|
|
4
|
|
1
|
|
-
|
|
1
|
|
300%
|
|
NM
|
|
300%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic System
|
|
27
|
|
101
|
|
128
|
|
26
|
|
135
|
|
161
|
|
4%
|
|
(25%)
|
|
(20%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
7
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
|
DOMESTIC
HOTEL PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR
APPROVED FOR DEVELOPMENT
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A
hotel in the domestic pipeline does not always result in an open and
operating hotel due to various factors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Variance
|
|
|
|
December
31, 2011
|
|
December
31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Units
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
29
|
|
46
|
|
75
|
|
30
|
|
62
|
|
92
|
|
(1)
|
|
(3%)
|
|
(16)
|
|
(26%)
|
|
(17)
|
|
(18%)
|
|
Comfort
Suites
|
|
1
|
|
90
|
|
91
|
|
1
|
|
122
|
|
123
|
|
-
|
|
0%
|
|
(32)
|
|
(26%)
|
|
(32)
|
|
(26%)
|
|
Sleep
Inn
|
|
1
|
|
49
|
|
50
|
|
-
|
|
75
|
|
75
|
|
1
|
|
NM
|
|
(26)
|
|
(35%)
|
|
(25)
|
|
(33%)
|
|
Quality
|
|
29
|
|
5
|
|
34
|
|
33
|
|
8
|
|
41
|
|
(4)
|
|
(12%)
|
|
(3)
|
|
(38%)
|
|
(7)
|
|
(17%)
|
|
Clarion
|
|
14
|
|
1
|
|
15
|
|
18
|
|
2
|
|
20
|
|
(4)
|
|
(22%)
|
|
(1)
|
|
(50%)
|
|
(5)
|
|
(25%)
|
|
Econo
Lodge
|
|
25
|
|
2
|
|
27
|
|
35
|
|
2
|
|
37
|
|
(10)
|
|
(29%)
|
|
-
|
|
0%
|
|
(10)
|
|
(27%)
|
|
Rodeway
|
|
22
|
|
1
|
|
23
|
|
12
|
|
2
|
|
14
|
|
10
|
|
83%
|
|
(1)
|
|
(50%)
|
|
9
|
|
64%
|
|
MainStay
|
|
2
|
|
28
|
|
30
|
|
1
|
|
42
|
|
43
|
|
1
|
|
100%
|
|
(14)
|
|
(33%)
|
|
(13)
|
|
(30%)
|
|
Suburban
|
|
2
|
|
20
|
|
22
|
|
-
|
|
27
|
|
27
|
|
2
|
|
NM
|
|
(7)
|
|
(26%)
|
|
(5)
|
|
(19%)
|
|
Ascend
Collection
|
|
6
|
|
4
|
|
10
|
|
6
|
|
4
|
|
10
|
|
-
|
|
0%
|
|
-
|
|
0%
|
|
-
|
|
0%
|
|
Cambria
Suites
|
|
-
|
|
31
|
|
31
|
|
-
|
|
34
|
|
34
|
|
-
|
|
NM
|
|
(3)
|
|
(9%)
|
|
(3)
|
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic Pipeline
|
|
131
|
|
277
|
|
408
|
|
136
|
|
380
|
|
516
|
|
(5)
|
|
(4%)
|
|
(103)
|
|
(27%)
|
|
(108)
|
|
(21%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
8
|
|
|
SUPPLEMENTAL
NON-GAAP FINANCIAL INFORMATION
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar
amounts in thousands)
|
|
Three
Months Ended December 31,
|
|
Year
Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
Franchising
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
165,890
|
|
$
155,006
|
|
$
638,793
|
|
$
596,076
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and reservation revenues
|
|
(90,844)
|
|
(87,150)
|
|
(349,036)
|
|
(329,246)
|
|
|
|
|
Hotel
operations
|
|
(1,183)
|
|
(987)
|
|
(4,356)
|
|
(4,031)
|
|
|
|
|
Franchising
Revenues
|
|
$
73,863
|
|
$
66,869
|
|
$
285,401
|
|
$
262,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
165,890
|
|
$
155,006
|
|
$
638,793
|
|
$
596,076
|
|
|
|
|
Operating
Income
|
|
$
38,662
|
|
$
38,441
|
|
$
171,863
|
|
$
160,762
|
|
|
|
|
Operating Margin
|
|
23.3%
|
|
24.8%
|
|
26.9%
|
|
27.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Franchising Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Revenues
|
|
$
73,863
|
|
$
66,869
|
|
$
285,401
|
|
$
262,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
38,662
|
|
$
38,441
|
|
$
171,863
|
|
$
160,762
|
|
|
|
|
Employee
termination benefits
|
|
3,619
|
|
1,233
|
|
4,444
|
|
1,730
|
|
|
|
|
Hotel
operations
|
|
(310)
|
|
(188)
|
|
(890)
|
|
(845)
|
|
|
|
|
|
|
$
41,971
|
|
$
39,486
|
|
$
175,417
|
|
$
161,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Franchising Margins
|
|
56.8%
|
|
59.0%
|
|
61.5%
|
|
61.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE COSTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar
amounts in thousands)
|
|
Three
Months Ended December 31,
|
|
Year
Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative expense
|
|
$
33,463
|
|
$
26,744
|
|
$
106,404
|
|
$
94,540
|
|
|
|
|
Employee
termination benefits
|
|
(3,619)
|
|
(1,233)
|
|
(4,444)
|
|
(1,730)
|
|
|
|
|
Adjusted
Selling, General and Administrative Expense
|
|
$
29,844
|
|
$
25,511
|
|
$
101,960
|
|
$
92,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share amounts)
|
|
Three
Months Ended December 31,
|
|
Year
Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
24,786
|
|
$
24,143
|
|
$
110,396
|
|
$
107,441
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
termination benefits
|
|
2,291
|
|
772
|
|
2,813
|
|
1,083
|
|
|
|
|
Loss
on land held for sale
|
|
-
|
|
-
|
|
1,119
|
|
-
|
|
|
|
Adjusted
Net Income
|
|
$
27,077
|
|
$
24,915
|
|
$
114,328
|
|
$
108,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding-diluted
|
|
58,608
|
|
59,706
|
|
59,525
|
|
59,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share
|
|
$ 0.42
|
|
$ 0.40
|
|
$ 1.85
|
|
$ 1.80
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
termination benefits
|
|
0.04
|
|
0.02
|
|
0.05
|
|
0.02
|
|
|
|
|
Loss
on land held for sale
|
|
-
|
|
-
|
|
0.02
|
|
-
|
|
|
|
Adjusted
Diluted Earnings Per Share (EPS)
|
|
$ 0.46
|
|
$ 0.42
|
|
$ 1.92
|
|
$ 1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2011 Actuals
|
|
Q4
2010 Actuals
|
|
Year
Ended December
31, 2011 Actuals
|
|
Year
Ended December
31, 2010 Actuals
|
|
Full-Year
2012
Outlook
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (per GAAP)
|
|
$ 38.7
|
|
$ 38.4
|
|
$ 171.9
|
|
$ 160.8
|
|
$190 -
$194
|
|
|
Employee
termination benefits
|
|
3.6
|
|
1.2
|
|
4.4
|
|
1.7
|
|
-
|
|
|
Depreciation
and amortization
|
|
2.0
|
|
1.9
|
|
8.0
|
|
8.3
|
|
9
|
|
|
Adjusted
Earnings before interest, taxes, depreciation &
amortization
(non-GAAP)
|
|
$ 44.3
|
|
$ 41.5
|
|
$ 184.3
|
|
$ 170.8
|
|
$199 -
$203
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|