SILVER SPRING, Md., April 26, 2012 -- Choice Hotels International,
Inc., (NYSE: CHH) today reported the following highlights for
first quarter 2012:
- Diluted earnings per share ("EPS") for first quarter 2012
were $0.34 compared to adjusted diluted
EPS of $0.28 for the first quarter of
2011. Adjusted diluted EPS for the first quarter of 2011 excludes
certain special items, as described below, totaling $0.02. Diluted EPS were $0.26
for the three months ended March 31,
2011.
- Earnings before interest, taxes, depreciation and
amortization ("EBITDA") increased 19% to $33.1
million for the three months ended March
31, 2012, compared to $27.7 million
for the three months ended March 31, 2011.
Operating income increased 21% from $25.7
million for the three months ended March
31, 2011 to $31.1 million for the
same period of 2012.
- Franchising revenues increased 11% to $57.3 million for the three months ended March 31, 2012 from $51.5
million for the same period of 2011. Total revenues increased
12% to $129.2 million for the three
months ended March 31, 2012 compared to
the same period of 2011.
- Worldwide unit growth increased 0.8 percent from March 31, 2011 comprised of domestic and
international unit growth of 0.7 percent and 0.9 percent, respectively.
- Domestic system-wide revenue per available room ("RevPAR")
increased 8.6% for the three months ended March
31, 2012 compared to the same period of 2011 as occupancy and
average daily rates increased 250 basis points and 2.5 percent,
respectively.
- The company executed 64 new domestic hotel franchise
contracts for the quarter ended March 31, 2012
compared to 56 new domestic hotel franchise contracts in the same
period of the prior year, a 14% increase.
- The number of worldwide hotels under construction, awaiting
conversion or approved for development as of March
31, 2012 was 471 hotels representing 38,210 rooms;
"Domestic RevPAR growth exceeded our expectations due to a
combination of strong occupancy gains and increases in average daily
rates," said Stephen P. Joyce,
president and chief executive officer. "While the development
environment continues to be challenging, we are pleased with the
continued strengthening of leisure travel and the success of our
programs designed to drive business through our central reservation
channels which deliver guests at the highest average daily rates."
Special Items
During the three months ended March
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. This amount
represented diluted EPS of $0.02 for the
three months ended March 31, 2011.
Outlook for 2012
The company's second quarter 2012 diluted EPS is expected to
be $0.51. The company expects full-year
2012 diluted EPS to range between $2.03 and
$2.08. EBITDA for full-year 2012 are expected to range between $200 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 7% for second
quarter of 2012 and increase between approximately 5% and 7% for
full-year 2012;
- The effective royalty rate is expected to increase 1 basis
point for full-year 2012;
- All figures assume the existing share count and an
effective tax rate of 34.5% for the second 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 three months ended March 31,
2012, the company paid $10.7 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 three months ended March
31, 2012, the company purchased approximately 0.3 million shares
of its common stock at an average price of $36.81
for a total cost of $12.9 million under
the share repurchase program. Subsequent to March
31, 2012 and through April 26, 2012,
the company repurchased an additional 0.1 million shares for a total
cost of $5.3 million at an average price
of $37.28 and has authorization to
purchase up to an additional 1.5 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
45.1 million shares of its common stock for a total cost of $1.1 billion through March
31, 2012. Considering the effect of a two-for-one stock split in
October 2005, the company had
repurchased 78.1 million shares through March
31, 2012 under the share repurchase program at an average price
of $13.83 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 strategic
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 Friday, April 27, 2012 at 10:00 a.m. EDT to discuss the company's first
quarter 2012 results. The dial-in number to listen to the call is
1-888-396-2356, and the access code is 79227006. International callers
should dial 1-617-847-8709 and enter the access code 79227006. 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 12:00 p.m. EDT on Friday, April 27, 2012 through Sunday, May 27, 2012 by calling 1-888-286-8010
and entering access code 90956223. The international dial-in number for
the replay is 1-617-801-6888, access code 90956223. 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 March 31, 2012,
more than 350 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 approximately 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 Private Securities
Litigation Reform Act of 1995. Generally, our use of words such as
"expect," "estimate," "believe," "anticipate," "will," "forecast,"
"plan"," project," "assume" or similar words of futurity identify such
forward-looking statements. These forward-looking statements are based
on management's current beliefs, assumptions and expectations regarding
future events, which in turn are based on information currently
available to management. Such statements may relate to projections of
the company's revenue, earnings and other financial and operational
measures, company debt levels, 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, 2011, filed with the Securities
and Exchange Commission on February 29,
2012. 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, EBITDA, franchising revenues and
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 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
liability 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: The company's management uses
adjusted diluted EPS, which excludes a reduction in the carrying amount
of land held for sale during the three months ended March 31, 2011. The company utilizes this
non-GAAP measure 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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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Three
Months Ended March 31,
|
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|
|
|
|
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|
Variance
|
|
|
|
|
|
2012
|
|
2011
|
|
$
|
|
%
|
(In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
REVENUES:
|
|
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|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Royalty
fees
|
|
|
|
$
47,853
|
|
$
43,794
|
|
$ 4,059
|
|
9%
|
Initial
franchise and relicensing fees
|
|
2,528
|
|
2,721
|
|
(193)
|
|
(7%)
|
Procurement
services
|
|
|
3,315
|
|
3,261
|
|
54
|
|
2%
|
Marketing
and reservation
|
|
|
70,929
|
|
62,967
|
|
7,962
|
|
13%
|
Hotel
operations
|
|
|
|
978
|
|
864
|
|
114
|
|
13%
|
Other
|
|
|
|
|
3,566
|
|
1,674
|
|
1,892
|
|
113%
|
Total
revenues
|
|
|
129,169
|
|
115,281
|
|
13,888
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
|
24,349
|
|
23,847
|
|
502
|
|
2%
|
Depreciation
and amortization
|
|
|
2,017
|
|
1,955
|
|
62
|
|
3%
|
Marketing
and reservation
|
|
|
70,929
|
|
62,967
|
|
7,962
|
|
13%
|
Hotel
operations
|
|
|
|
809
|
|
833
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|
(24)
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|
(3%)
|
Total
operating expenses
|
|
|
98,104
|
|
89,602
|
|
8,502
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
31,065
|
|
25,679
|
|
5,386
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
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OTHER
INCOME AND EXPENSES:
|
|
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|
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|
|
|
Interest
expense
|
|
|
|
3,117
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|
3,224
|
|
(107)
|
|
(3%)
|
Interest
income
|
|
|
|
(337)
|
|
(210)
|
|
(127)
|
|
60%
|
Other
(gains) and losses
|
|
|
(2,003)
|
|
1,043
|
|
(3,046)
|
|
(292%)
|
Equity
in net (income) loss of affiliates
|
|
55
|
|
(301)
|
|
356
|
|
(118%)
|
Total
other income and expenses, net
|
832
|
|
3,756
|
|
(2,924)
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|
(78%)
|
|
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|
|
|
|
|
|
|
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|
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Income
before income taxes
|
|
|
30,233
|
|
21,923
|
|
8,310
|
|
38%
|
Income
taxes
|
|
|
|
10,236
|
|
6,193
|
|
4,043
|
|
65%
|
Net
income
|
|
|
|
$
19,997
|
|
$
15,730
|
|
$ 4,267
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|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
|
|
$
0.34
|
|
$ 0.26
|
|
$ 0.08
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|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share
|
|
|
$
0.34
|
|
$ 0.26
|
|
$ 0.08
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
Choice
Hotels International, Inc.
|
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Exhibit
2
|
Consolidated
Balance Sheets
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|
|
(In
thousands, except per share amounts)
|
March 31,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
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|
ASSETS
|
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Cash
and cash equivalents
|
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|
$
91,312
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$
107,057
|
Accounts
receivable, net
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|
53,290
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|
53,012
|
Investments,
employee benefit plans, at fair value
|
5,241
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|
12,094
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Other
current assets
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|
28,635
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|
22,633
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|
Total
current assets
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|
178,478
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|
194,796
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|
|
|
|
|
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|
Fixed
assets and intangibles, net
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|
133,717
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|
135,252
|
Receivable
-- marketing and reservation fees
|
63,690
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|
54,014
|
Investments,
employee benefit plans, at fair value
|
12,625
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|
11,678
|
Other
assets
|
|
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|
54,722
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|
51,949
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
443,232
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|
$
447,689
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|
|
|
|
|
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|
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|
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LIABILITIES
AND SHAREHOLDERS' DEFICIT
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|
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|
|
Accounts
payable and accrued expenses
|
$
73,658
|
|
$
92,240
|
Deferred
revenue
|
|
|
70,830
|
|
68,825
|
Deferred
compensation & retirement plan obligations
|
19,184
|
|
18,935
|
Current
portion of long-term debt
|
|
679
|
|
673
|
Other
current liabilities
|
|
|
12,004
|
|
3,892
|
|
Total
current liabilities
|
|
176,355
|
|
184,565
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
257,780
|
|
252,032
|
Deferred
compensation & retirement plan obligations
|
19,640
|
|
20,593
|
Other
liabilities
|
|
|
|
15,633
|
|
16,060
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
469,408
|
|
473,250
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value
|
|
581
|
|
583
|
Additional
paid-in-capital
|
|
|
100,900
|
|
102,665
|
Accumulated
other comprehensive loss
|
(6,154)
|
|
(6,801)
|
Treasury
stock, at cost
|
|
|
(925,763)
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|
(916,955)
|
Retained
earnings
|
|
|
804,260
|
|
794,947
|
|
|
|
|
|
|
|
|
|
Total
shareholders' deficit
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|
(26,176)
|
|
(25,561)
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' deficit
|
$
443,232
|
|
$
447,689
|
|
|
|
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|
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|
|
Choice
Hotels International, Inc.
|
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Exhibit
3
|
Consolidated
Statements of Cash Flows
|
|
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|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
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|
(In
thousands)
|
Three
Months Ended March 31,
|
|
|
|
|
|
2012
|
|
2011
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
income
|
$
19,997
|
|
$
15,730
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided (used)
|
|
|
|
by
operating activities:
|
|
|
|
Depreciation and amortization
|
2,017
|
|
1,955
|
Provision for bad debts
|
679
|
|
778
|
Non-cash stock compensation and other charges
|
2,543
|
|
4,513
|
Non-cash interest and other income
|
(1,593)
|
|
(350)
|
Equity in net (income) loss of affiliates
|
55
|
|
(301)
|
|
|
|
|
Changes
in assets and liabilities:
|
|
|
|
Receivables
|
(870)
|
|
(1,250)
|
Receivable - marketing and reservation fees, net
|
(6,187)
|
|
(8,979)
|
Accounts payable
|
6,712
|
|
(1,775)
|
Accrued expenses
|
(25,342)
|
|
(18,931)
|
Income taxes payable/receivable
|
8,180
|
|
1,182
|
Deferred income taxes
|
(30)
|
|
(12)
|
Deferred revenue
|
1,997
|
|
4,709
|
Other
assets
|
(2,611)
|
|
(1,147)
|
Other
liabilities
|
(1,135)
|
|
(1,339)
|
|
|
|
|
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
|
4,412
|
|
(5,217)
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Investment
in property and equipment
|
(3,129)
|
|
(1,835)
|
Equity
method investments
|
(2,600)
|
|
(1,600)
|
Purchases
of investments, employee benefit plans
|
(743)
|
|
(897)
|
Proceeds
from sales of investments, employee benefit plans
|
8,652
|
|
310
|
Issuance
of notes receivable
|
(3,719)
|
|
(1,477)
|
Collections
of notes receivable
|
151
|
|
7
|
Other
items, net
|
(108)
|
|
(95)
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
(1,496)
|
|
(5,587)
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
borrowings pursuant to revolving credit facilities
|
5,900
|
|
7,900
|
Repayments
of long-term debt
|
(166)
|
|
(5)
|
Purchase
of treasury stock
|
(14,854)
|
|
(2,207)
|
Dividends
paid
|
(10,713)
|
|
(10,950)
|
Excess
tax benefits from stock-based compensation
|
422
|
|
834
|
Debt
issuance costs
|
-
|
|
(2,207)
|
Proceeds
from exercise of stock options
|
389
|
|
2,238
|
|
|
|
|
NET CASH USED IN FINANCING ACTIVITIES
|
(19,022)
|
|
(4,397)
|
|
|
|
|
Net
change in cash and cash equivalents
|
(16,106)
|
|
(15,201)
|
Effect
of foreign exchange rate changes on cash and cash equivalents
|
361
|
|
347
|
Cash
and cash equivalents at beginning of period
|
107,057
|
|
91,259
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
91,312
|
|
$
76,405
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
4
|
SUPPLEMENTAL
OPERATING INFORMATION
|
|
DOMESTIC
HOTEL SYSTEM
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended March 31, 2012*
|
|
For
the Three Months Ended March 31, 2011*
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
|
|
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
$
74.29
|
|
46.8%
|
|
$
34.76
|
|
$ 72.21
|
|
44.3%
|
|
$ 32.00
|
|
2.9%
|
|
250
|
bps
|
|
8.6%
|
|
|
Comfort
Suites
|
|
79.88
|
|
51.0%
|
|
40.72
|
|
79.08
|
|
47.0%
|
|
37.18
|
|
1.0%
|
|
400
|
bps
|
|
9.5%
|
|
|
Sleep
|
|
66.39
|
|
45.0%
|
|
29.90
|
|
64.94
|
|
42.2%
|
|
27.43
|
|
2.2%
|
|
280
|
bps
|
|
9.0%
|
|
|
Quality
|
|
63.39
|
|
40.8%
|
|
25.87
|
|
61.58
|
|
38.6%
|
|
23.80
|
|
2.9%
|
|
220
|
bps
|
|
8.7%
|
|
|
Clarion
|
|
67.90
|
|
38.7%
|
|
26.26
|
|
67.72
|
|
36.6%
|
|
24.75
|
|
0.3%
|
|
210
|
bps
|
|
6.1%
|
|
|
Econo
Lodge
|
|
50.31
|
|
38.7%
|
|
19.45
|
|
49.61
|
|
37.3%
|
|
18.49
|
|
1.4%
|
|
140
|
bps
|
|
5.2%
|
|
|
Rodeway
|
|
47.08
|
|
41.7%
|
|
19.61
|
|
45.77
|
|
38.6%
|
|
17.65
|
|
2.9%
|
|
310
|
bps
|
|
11.1%
|
|
|
MainStay
|
|
64.60
|
|
61.8%
|
|
39.94
|
|
60.97
|
|
53.9%
|
|
32.85
|
|
6.0%
|
|
790
|
bps
|
|
21.6%
|
|
|
Suburban
|
|
39.15
|
|
62.5%
|
|
24.47
|
|
38.29
|
|
60.7%
|
|
23.24
|
|
2.2%
|
|
180
|
bps
|
|
5.3%
|
|
|
Ascend
Collection
|
|
104.02
|
|
52.0%
|
|
54.11
|
|
98.46
|
|
49.9%
|
|
49.09
|
|
5.6%
|
|
210
|
bps
|
|
10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
67.32
|
|
44.5%
|
|
$
29.95
|
|
$ 65.69
|
|
42.0%
|
|
$ 27.58
|
|
2.5%
|
|
250
|
bps
|
|
8.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Quarter Ended*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2012
|
|
3/31/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide
effective royalty
rate
|
|
4.34%
|
|
4.35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Operating statistics represent hotel operations from December through
February
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
5
|
SUPPLEMENTAL
HOTEL AND ROOM SUPPLY DATA
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31, 2012
|
|
March
31, 2011
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
1,392
|
|
108,777
|
|
1,422
|
|
110,932
|
|
(30)
|
|
(2,155)
|
|
(2.1%)
|
|
(1.9%)
|
|
Comfort
Suites
|
|
613
|
|
47,506
|
|
621
|
|
48,096
|
|
(8)
|
|
(590)
|
|
(1.3%)
|
|
(1.2%)
|
|
Sleep
|
|
394
|
|
28,564
|
|
397
|
|
28,895
|
|
(3)
|
|
(331)
|
|
(0.8%)
|
|
(1.1%)
|
|
Quality
|
|
1,054
|
|
91,942
|
|
1,015
|
|
88,967
|
|
39
|
|
2,975
|
|
3.8%
|
|
3.3%
|
|
Clarion
|
|
188
|
|
27,550
|
|
192
|
|
28,259
|
|
(4)
|
|
(709)
|
|
(2.1%)
|
|
(2.5%)
|
|
Econo
Lodge
|
|
797
|
|
49,254
|
|
779
|
|
48,245
|
|
18
|
|
1,009
|
|
2.3%
|
|
2.1%
|
|
Rodeway
|
|
396
|
|
22,183
|
|
381
|
|
20,940
|
|
15
|
|
1,243
|
|
3.9%
|
|
5.9%
|
|
MainStay
|
|
39
|
|
3,024
|
|
38
|
|
2,943
|
|
1
|
|
81
|
|
2.6%
|
|
2.8%
|
|
Suburban
|
|
61
|
|
7,191
|
|
63
|
|
7,543
|
|
(2)
|
|
(352)
|
|
(3.2%)
|
|
(4.7%)
|
|
Ascend
Collection
|
|
53
|
|
4,671
|
|
42
|
|
3,259
|
|
11
|
|
1,412
|
|
26.2%
|
|
43.3%
|
|
Cambria
Suites
|
|
19
|
|
2,215
|
|
20
|
|
2,328
|
|
(1)
|
|
(113)
|
|
(5.0%)
|
|
(4.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Franchises
|
|
5,006
|
|
392,877
|
|
4,970
|
|
390,407
|
|
36
|
|
2,470
|
|
0.7%
|
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Franchises
|
|
1,168
|
|
103,491
|
|
1,158
|
|
102,326
|
|
10
|
|
1,165
|
|
0.9%
|
|
1.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Franchises
|
|
6,174
|
|
496,368
|
|
6,128
|
|
492,733
|
|
46
|
|
3,635
|
|
0.8%
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
6
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
SUPPLEMENTAL
INFORMATION BY BRAND
|
DEVELOPMENT
RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended March 31, 2012
|
|
For
the Three Months Ended March 31, 2011
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
1
|
|
8
|
|
9
|
|
2
|
|
7
|
|
9
|
|
(50%)
|
|
14%
|
|
0%
|
|
Comfort
Suites
|
|
1
|
|
2
|
|
3
|
|
-
|
|
2
|
|
2
|
|
NM
|
|
0%
|
|
50%
|
|
Sleep
|
|
3
|
|
-
|
|
3
|
|
2
|
|
-
|
|
2
|
|
50%
|
|
NM
|
|
50%
|
|
Quality
|
|
-
|
|
27
|
|
27
|
|
-
|
|
24
|
|
24
|
|
NM
|
|
13%
|
|
13%
|
|
Clarion
|
|
-
|
|
2
|
|
2
|
|
-
|
|
5
|
|
5
|
|
NM
|
|
(60%)
|
|
(60%)
|
|
Econo
Lodge
|
|
-
|
|
4
|
|
4
|
|
-
|
|
6
|
|
6
|
|
NM
|
|
(33%)
|
|
(33%)
|
|
Rodeway
|
|
-
|
|
12
|
|
12
|
|
-
|
|
5
|
|
5
|
|
NM
|
|
140%
|
|
140%
|
|
MainStay
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
(100%)
|
|
NM
|
|
(100%)
|
|
Suburban
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
NM
|
|
Ascend
Collection
|
|
1
|
|
2
|
|
3
|
|
-
|
|
1
|
|
1
|
|
NM
|
|
100%
|
|
200%
|
|
Cambria
Suites
|
|
1
|
|
-
|
|
1
|
|
1
|
|
-
|
|
1
|
|
0%
|
|
NM
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic System
|
|
7
|
|
57
|
|
64
|
|
6
|
|
50
|
|
56
|
|
17%
|
|
14%
|
|
14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
March
31, 2012
|
|
March
31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Units
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
28
|
|
44
|
|
72
|
|
31
|
|
58
|
|
89
|
|
(3)
|
|
(10%)
|
|
(14)
|
|
(24%)
|
|
(17)
|
|
(19%)
|
Comfort
Suites
|
|
3
|
|
83
|
|
86
|
|
3
|
|
117
|
|
120
|
|
-
|
|
0%
|
|
(34)
|
|
(29%)
|
|
(34)
|
|
(28%)
|
Sleep
Inn
|
|
1
|
|
44
|
|
45
|
|
-
|
|
70
|
|
70
|
|
1
|
|
NM
|
|
(26)
|
|
(37%)
|
|
(25)
|
|
(36%)
|
Quality
|
|
40
|
|
4
|
|
44
|
|
47
|
|
6
|
|
53
|
|
(7)
|
|
(15%)
|
|
(2)
|
|
(33%)
|
|
(9)
|
|
(17%)
|
Clarion
|
|
12
|
|
1
|
|
13
|
|
20
|
|
2
|
|
22
|
|
(8)
|
|
(40%)
|
|
(1)
|
|
(50%)
|
|
(9)
|
|
(41%)
|
Econo
Lodge
|
|
18
|
|
2
|
|
20
|
|
35
|
|
2
|
|
37
|
|
(17)
|
|
(49%)
|
|
-
|
|
0%
|
|
(17)
|
|
(46%)
|
Rodeway
|
|
25
|
|
1
|
|
26
|
|
14
|
|
2
|
|
16
|
|
11
|
|
79%
|
|
(1)
|
|
(50%)
|
|
10
|
|
63%
|
MainStay
|
|
2
|
|
22
|
|
24
|
|
2
|
|
39
|
|
41
|
|
-
|
|
0%
|
|
(17)
|
|
(44%)
|
|
(17)
|
|
(41%)
|
Suburban
|
|
2
|
|
16
|
|
18
|
|
-
|
|
20
|
|
20
|
|
2
|
|
NM
|
|
(4)
|
|
(20%)
|
|
(2)
|
|
(10%)
|
Ascend
Collection
|
|
7
|
|
4
|
|
11
|
|
4
|
|
4
|
|
8
|
|
3
|
|
75%
|
|
-
|
|
0%
|
|
3
|
|
38%
|
Cambria
Suites
|
|
-
|
|
29
|
|
29
|
|
-
|
|
32
|
|
32
|
|
-
|
|
NM
|
|
(3)
|
|
(9%)
|
|
(3)
|
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic Pipeline
|
|
138
|
|
250
|
|
388
|
|
156
|
|
352
|
|
508
|
|
(18)
|
|
(12%)
|
|
(102)
|
|
(29%)
|
|
(120)
|
|
(24%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
Franchising
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
129,169
|
|
$
115,281
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Marketing and reservation revenues
|
|
(70,929)
|
|
(62,967)
|
|
|
|
|
|
|
|
Hotel
operations
|
|
(978)
|
|
(864)
|
|
|
|
|
|
|
|
Franchising
Revenues
|
|
$
57,262
|
|
$
51,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
|
$
129,169
|
|
$
115,281
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
31,065
|
|
$
25,679
|
|
|
|
|
|
|
|
Operating Margin
|
|
24.0%
|
|
22.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Revenues
|
|
$
57,262
|
|
$
51,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
31,065
|
|
$
25,679
|
|
|
|
|
|
|
|
Hotel
operations
|
|
(169)
|
|
(31)
|
|
|
|
|
|
|
|
|
|
$
30,896
|
|
$
25,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising Margins
|
|
54.0%
|
|
49.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share amounts)
|
|
Three
Months Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
19,997
|
|
$
15,730
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Loss
on land held for sale
|
|
-
|
|
1,111
|
|
|
|
|
|
|
Adjusted
Net Income
|
|
$
19,997
|
|
$
16,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding-diluted
|
|
58,317
|
|
59,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings Per Share
|
|
$ 0.34
|
|
$ 0.26
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Loss
on land held for sale
|
|
-
|
|
0.02
|
|
|
|
|
|
|
Adjusted
Diluted Earnings Per Share (EPS)
|
|
$ 0.34
|
|
$ 0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
2012 Actuals
|
|
Q1
2011 Actuals
|
|
Full-Year
2012 Outlook
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income (per GAAP)
|
|
$ 31.1
|
|
$ 25.7
|
|
$191.5 - $194.5
|
|
|
|
|
|
Depreciation
and amortization
|
|
2.0
|
|
2.0
|
|
8.5
|
|
|
|
|
|
Earnings
before interest, taxes, depreciation & amortization (non-GAAP)
|
|
$ 33.1
|
|
$ 27.7
|
|
$200
-$203
|
|
|