SILVER
SPRING, Md., Oct. 24, 2012 --
Choice Hotels International, Inc., (NYSE: CHH) today reported the following highlights for
the third quarter of 2012:
- Diluted earnings per share ("EPS") for the third
quarter of 2012 of $0.76 compared to
diluted EPS of $0.71 for the third
quarter of 2011, a 7% increase.
- Earnings before interest, taxes, depreciation and
amortization ("EBITDA") increased 4% to $67.3
million for the three months ended September
30, 2012, compared to $64.5 million
for the three months ended September 30, 2011.
Operating income increased 5% from $62.4 million
for the three months ended September 30, 2011
to $65.3 million for the same period of
2012.
- Franchising revenues increased 4% to $90.1 million for the three months ended September 30, 2012 from $86.7
million for the same period of 2011. Total revenues increased 9%
to $210.4 million for the three months
ended September 30, 2012 compared to the
same period of 2011.
- Domestic royalty fees for the three months ended September 30, 2012 increased $4.1 million to $74.3
million from $70.2 million in the
three months ended September 30, 2011,
an increase of 6%.
- Franchising margins increased 50 basis points from
71.6% for the three months ended September 30,
2011 to 72.1% for the same period of the current year.
- The effective income tax rate for the three months
ended September 30, 2012 was 20.3%
compared to 25.7% for the same period of the prior year.
- Income tax expense for the three months ended September 30, 2012 includes discrete items and
current tax benefits totaling $7.7 million
or $0.13 EPS that were not contemplated
in the company's previous EPS guidance.
- Domestic unit and room growth increased 1.3 percent
and 1.0 percent from September 30, 2011,
respectively.
- Domestic system-wide revenue per available room
("RevPAR") increased 5.6% for the three months ended September 30, 2012 compared to the same period
of 2011 as occupancy and average daily rates increased 180 basis points
and 2.7 percent, respectively.
- The company executed 89 new domestic hotel franchise
contracts for the three months ended September
30, 2012 compared to 79 new domestic hotel franchise contracts
in the same period of the prior year, a 13% increase.
- The number of worldwide hotels under construction,
awaiting conversion or approved for development as of September 30, 2012 was 435 hotels representing
36,150 rooms.
- A special cash dividend in the amount of $10.41 per share or approximately $600.7 million in the aggregate was paid on August 23, 2012. The special cash dividend was
paid with the proceeds of the company's recent offering of $400 million 5.75% unsecured senior notes and
its new $350 million senior credit
facility entered into on July 25, 2012.
As a result of these transactions, and as contemplated in the company's
previously provided EPS guidance, interest expense increased $6.9 million to $10.2
million for the three months ended September
30, 2012 compared to the same period of the prior year.
"The lodging industry continues to
improve despite challenging global economic conditions and this is
reflected in our third quarter results," said Stephen
P. Joyce, president and chief executive officer. "Our RevPAR
increased by approximately 6%, driven by a further improvement of hotel
occupancy levels and the pricing power of our brands. We are also
pleased by the continued improvement of the development environment. We
will continue to invest in programs designed to drive more reservations
through our central channels, improve guest loyalty and improve the
value of our brands in an effort to drive incremental business to our
franchisees."
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.
Dividends
For the nine months ended September 30, 2012, the company paid $632.8 million of cash dividends to
shareholders which included a special cash dividend in the amount of $10.41 per share or approximately $600.7 million paid on August
23, 2012. The company's current quarterly dividend rate per
common share is $0.185, subject to
declaration by our board of directors.
Share Repurchases
During the nine months ended September 30, 2012, the company repurchased
0.5 million shares for a total cost of $19.9
million and has authorization to purchase up to an additional
1.4 million shares under this program. The company did not repurchase
any shares of common stock under the share repurchase program during
the three months ended September 30, 2012.
We expect to continue making repurchases under our share repurchase
program 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 45.3 million shares of its common stock for a
total cost of $1.1 billion through June 30, 2012. Considering the effect of a
two-for-one stock split in October 2005,
the company had repurchased 78.3 million shares through September 30, 2012 under the share repurchase
program at an average price of $13.89
per share.
Other
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.
Balance Sheet
At September
30, 2012, the company had gross debt of $819.0
million and cash and cash equivalents totaling $115.1 million resulting in net debt of $703.9 million.
On June
27, 2012, the company issued unsecured senior notes in an
aggregate principal amount of $400 million,
in an underwritten, registered public offering. These notes will mature
in July 2022 and bear a coupon rate of
interest of 5.75%. Considering bond issuance costs, the company's
effective interest costs related to these senior notes is approximately
5.94%.
On July
25, 2012, the company entered into a senior secured credit
facility consisting of a $200 million
revolving credit tranche and a $150 million
term loan tranche, with a four year term. The company may elect to have
borrowings under the senior secured credit facility bear interest at
(i) a base rate plus a margin ranging from 100 to 325 basis points
based on the company's total leverage ratio or (ii) LIBOR plus a margin
ranging from 200 to 425 basis points based on the company's total
leverage ratio. As a result of entering into the senior secured credit
facility, the company's existing $300 million
senior unsecured revolving credit facility was terminated. Under the $300 million senior unsecured revolving credit
facility the company could elect to have borrowings bear interest at
(i) a base rate plus a margin ranging from 5 to 80 basis points based
on the company's credit rating or (ii) LIBOR plus a margin ranging from
105 to 180 basis points based on the company's credit rating.
The proceeds from the issuance of
the $400 million senior notes and the
company's new senior secured credit facility were utilized to pay the
special cash dividend.
Outlook
The company's fourth quarter 2012 diluted EPS is expected
to be at least $0.40. The company
expects full-year 2012 diluted EPS to range between $2.05 and $2.07. EBITDA for full-year 2012 are
expected to range between $201 million and
$202.5 million. These estimates include the following
assumptions:
- The company expects net domestic unit growth to
increase by approximately 1% in 2012;
- RevPAR is expected to increase approximately 4% for
fourth quarter of 2012 and increase between 6% and 6.5% for full-year
2012;
- The effective royalty rate is expected to remain flat
for full-year 2012;
- All figures assume the existing share count;
- An effective tax rate of 33.0% for the fourth quarter
and 29.1% for full-year 2012 and we expect our recurring effective tax
rate for future periods to be approximately 31.5%.
Conference Call
Choice will conduct a conference call on Thursday, October 25, 2012 at 9:30 a.m. EDT to discuss the company's third
quarter 2012 results. The dial-in number to listen to the call is
1-866-383-8003, and the access code is 78277943. International callers
should dial 1-617-597-5330 and enter the access code 78277943. 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 12:30 p.m. EDT
on Thursday, October 25, 2012 through Thursday, November 1, 2012 by calling
1-888-286-8010 and entering access code 20807104. The international
dial-in number for the replay is 1-617-801-6888, access code 20807104.
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
approximately 6,200 hotels, representing more than 495,000 rooms, in the United States and more than 30 other
countries and territories. As of September 30,
2012, 360 hotels, representing 29,000 rooms, were under
construction, awaiting conversion or approved for development in the
United States. Additionally, 75 hotels, representing approximately
7,000 rooms, were under construction, awaiting conversion or approved
for development in more than 20 other countries and territories. The
company's Comfort Inn, Comfort Suites, Quality, Sleep Inn, Clarion,
Cambria Suites, MainStay Suites, Suburban Extended Stay Hotel, Econo
Lodge and Rodeway Inn brands serve guests worldwide. In addition, via
its Ascend Collection membership program, travelers 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, ability to
repay outstanding indebtedness, payment of 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 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 Exhibit 8
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 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.
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 Collectionare proprietary
trademarks and service marks of Choice Hotels International.
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 September 30,
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Nine
Months Ended September 30,
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Variance
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Variance
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2012
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2011
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$
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%
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2012
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2011
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$
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%
|
(In
thousands, except per share amounts)
|
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REVENUES:
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|
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|
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|
Royalty fees
|
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$
80,845
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$
77,090
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$ 3,755
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5%
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$
194,762
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|
$
182,504
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$
12,258
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7%
|
Initial franchise and relicensing fees
|
3,247
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|
3,583
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(336)
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(9%)
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8,953
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|
9,083
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|
(130)
|
|
(1%)
|
Procurement services
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|
3,839
|
|
4,103
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|
(264)
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|
(6%)
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13,990
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|
14,037
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|
(47)
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|
(0%)
|
Marketing and reservation
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|
119,062
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|
104,393
|
|
14,669
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14%
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|
284,624
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|
258,192
|
|
26,432
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|
10%
|
Hotel
operations
|
|
|
1,238
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|
1,236
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|
2
|
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0%
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3,440
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|
3,173
|
|
267
|
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8%
|
Other
|
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|
2,182
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|
1,916
|
|
266
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14%
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7,434
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|
5,914
|
|
1,520
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|
26%
|
Total
revenues
|
|
210,413
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|
192,321
|
|
18,092
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9%
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513,203
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472,903
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|
40,300
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9%
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OPERATING
EXPENSES:
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Selling, general and administrative
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23,170
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22,555
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|
615
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3%
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72,073
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72,941
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(868)
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(1%)
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Depreciation and amortization
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1,995
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2,073
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(78)
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(4%)
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5,989
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|
5,976
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|
13
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0%
|
Marketing and reservation
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119,062
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104,393
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14,669
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14%
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284,624
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258,192
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|
26,432
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10%
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Hotel
operations
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933
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|
900
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33
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4%
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2,609
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2,593
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16
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1%
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Total
operating expenses
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145,160
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129,921
|
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15,239
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12%
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365,295
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339,702
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|
25,593
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8%
|
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|
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Operating
income
|
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65,253
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|
62,400
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|
2,853
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5%
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|
147,908
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|
133,201
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|
14,707
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11%
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OTHER
INCOME AND EXPENSES, NET:
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Interest expense
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10,166
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3,228
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6,938
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215%
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|
16,823
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|
9,719
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|
7,104
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73%
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Interest income
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(425)
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|
(506)
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81
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(16%)
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(1,156)
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(937)
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|
(219)
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23%
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Loss
on extinguishment of debt
|
526
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-
|
|
526
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NM
|
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526
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-
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526
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NM
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Other
(gains) and losses
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(511)
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2,673
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(3,184)
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(119%)
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(2,137)
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3,678
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(5,815)
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(158%)
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Equity in net (income) loss of affiliates
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(171)
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39
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(210)
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(538%)
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12
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(262)
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274
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(105%)
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Total
other income and expenses, net
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9,585
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|
5,434
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|
4,151
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76%
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|
14,068
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|
12,198
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|
1,870
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15%
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Income
before income taxes
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55,668
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56,966
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(1,298)
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(2%)
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133,840
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|
121,003
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|
12,837
|
|
11%
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Income
taxes
|
|
|
11,291
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|
14,664
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(3,373)
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(23%)
|
|
37,604
|
|
35,393
|
|
2,211
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|
6%
|
Net
income
|
|
|
$
44,377
|
|
$
42,302
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|
$ 2,075
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5%
|
|
$
96,236
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|
$
85,610
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$
10,626
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12%
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Basic
earnings per share
|
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$
0.77
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$ 0.71
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|
$ 0.06
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8%
|
|
$
1.66
|
|
$ 1.43
|
|
$ 0.23
|
|
16%
|
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|
|
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|
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|
|
|
|
|
|
|
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Diluted
earnings per share
|
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$
0.76
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|
$ 0.71
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|
$ 0.05
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7%
|
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$
1.65
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$ 1.43
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|
$ 0.22
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15%
|
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Choice
Hotels International, Inc.
|
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Exhibit
2
|
Consolidated
Balance Sheets
|
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|
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|
|
|
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|
|
|
|
|
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(In
thousands, except per share amounts)
|
September 30,
|
|
December 31,
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
(Unaudited)
|
|
|
|
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|
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ASSETS
|
|
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Cash
and cash equivalents
|
|
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$
115,064
|
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$
107,057
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Accounts
receivable, net
|
|
|
66,196
|
|
53,012
|
Investments,
employee benefit plans, at fair value
|
3,668
|
|
12,094
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Other
current assets
|
|
|
29,749
|
|
22,633
|
|
Total
current assets
|
|
|
214,677
|
|
194,796
|
|
|
|
|
|
|
|
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Fixed
assets and intangibles, net
|
|
133,382
|
|
135,252
|
Receivable
-- marketing and reservation fees
|
46,249
|
|
54,014
|
Investments,
employee benefit plans, at fair value
|
12,530
|
|
11,678
|
Other
assets
|
|
|
|
76,233
|
|
51,949
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
483,071
|
|
$
447,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses
|
$
87,784
|
|
$
92,240
|
Deferred
revenue
|
|
|
76,949
|
|
68,825
|
Deferred
compensation & retirement plan obligations
|
17,870
|
|
18,935
|
Current
portion of long-term debt
|
|
10,065
|
|
673
|
Other
current liabilities
|
|
|
14,506
|
|
3,892
|
|
Total
current liabilities
|
|
207,174
|
|
184,565
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
808,911
|
|
252,032
|
Deferred
compensation & retirement plan obligations
|
19,992
|
|
20,593
|
Other
liabilities
|
|
|
|
16,391
|
|
16,060
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
1,052,468
|
|
473,250
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value
|
|
581
|
|
583
|
Additional
paid-in-capital
|
|
|
107,939
|
|
102,665
|
Accumulated
other comprehensive loss
|
(5,904)
|
|
(6,801)
|
Treasury
stock, at cost
|
|
|
(930,487)
|
|
(916,955)
|
Retained
earnings
|
|
|
258,474
|
|
794,947
|
|
|
|
|
|
|
|
|
|
Total
shareholders' deficit
|
|
(569,397)
|
|
(25,561)
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' deficit
|
$
483,071
|
|
$
447,689
|
|
|
|
|
|
|
|
|
Choice
Hotels International, Inc.
|
|
|
Exhibit
3
|
Consolidated
Statements of Cash Flows
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
Nine
Months Ended September 30,
|
|
|
|
|
|
2012
|
|
2011
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
income
|
$
96,236
|
|
$
85,610
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided
|
|
|
|
by
operating activities:
|
|
|
|
Depreciation and amortization
|
5,989
|
|
5,976
|
Provision for bad debts, net
|
1,802
|
|
845
|
Non-cash stock compensation and other charges
|
7,306
|
|
10,262
|
Non-cash interest and other (income) loss
|
(633)
|
|
3,079
|
Loss
on extinguishment of debt
|
526
|
|
-
|
Dividends received from equity method investments
|
855
|
|
316
|
Equity in net (income) loss of affiliates
|
12
|
|
(262)
|
|
|
|
|
Changes
in assets and liabilities:
|
|
|
|
Receivables
|
(17,405)
|
|
(15,494)
|
Receivable - marketing and reservation fees, net
|
20,811
|
|
(1,474)
|
Accounts payable
|
5,980
|
|
4,468
|
Accrued expenses
|
(10,309)
|
|
(10,584)
|
Income taxes payable/receivable
|
12,786
|
|
14,354
|
Deferred income taxes
|
(1,627)
|
|
2,839
|
Deferred revenue
|
8,018
|
|
9,375
|
Other
assets
|
(7,458)
|
|
(556)
|
Other
liabilities
|
(1,613)
|
|
(2,861)
|
|
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
121,276
|
|
105,893
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Investment
in property and equipment
|
(12,525)
|
|
(8,129)
|
Equity
method investments
|
(9,454)
|
|
(3,600)
|
Purchases
of investments, employee benefit plans
|
(1,191)
|
|
(1,051)
|
Proceeds
from sales of investments, employee benefit plans
|
10,909
|
|
566
|
Issuance
of notes receivable
|
(7,305)
|
|
(4,320)
|
Collections
of notes receivable
|
326
|
|
15
|
Other
items, net
|
(322)
|
|
(312)
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
(19,562)
|
|
(16,831)
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Net
borrowings (repayments) pursuant to revolving credit facilities
|
16,725
|
|
(200)
|
Repayments
of long-term debt
|
(502)
|
|
(74)
|
Proceeds
from the issuance of long-term debt
|
543,500
|
|
75
|
Purchase
of treasury stock
|
(22,227)
|
|
(24,796)
|
Dividends
paid
|
(632,751)
|
|
(32,923)
|
Excess
tax benefits from stock-based compensation
|
793
|
|
1,108
|
Debt
issuance costs
|
(4,753)
|
|
(2,356)
|
Proceeds
from exercise of stock options
|
4,695
|
|
3,726
|
|
|
|
|
NET CASH USED IN FINANCING ACTIVITIES
|
(94,520)
|
|
(55,440)
|
|
|
|
|
Net
change in cash and cash equivalents
|
7,194
|
|
33,622
|
Effect
of foreign exchange rate changes on cash and cash equivalents
|
813
|
|
(147)
|
Cash
and cash equivalents at beginning of period
|
107,057
|
|
91,259
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
115,064
|
|
$
124,734
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
4
|
SUPPLEMENTAL
OPERATING INFORMATION
|
|
DOMESTIC
HOTEL SYSTEM
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Nine Months Ended September 30, 2012*
|
|
For
the Nine Months Ended September 30, 2011*
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
|
|
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
$
81.52
|
|
59.2%
|
|
$
48.24
|
|
$ 79.24
|
|
57.0%
|
|
$ 45.18
|
|
2.9%
|
|
220
|
bps
|
|
6.8%
|
|
|
Comfort
Suites
|
|
85.62
|
|
61.8%
|
|
52.92
|
|
83.92
|
|
58.4%
|
|
49.05
|
|
2.0%
|
|
340
|
bps
|
|
7.9%
|
|
|
Sleep
|
|
72.29
|
|
56.3%
|
|
40.68
|
|
69.92
|
|
53.5%
|
|
37.39
|
|
3.4%
|
|
280
|
bps
|
|
8.8%
|
|
|
Quality
|
|
69.84
|
|
51.8%
|
|
36.14
|
|
67.95
|
|
49.9%
|
|
33.90
|
|
2.8%
|
|
190
|
bps
|
|
6.6%
|
|
|
Clarion
|
|
74.98
|
|
49.4%
|
|
37.00
|
|
73.76
|
|
46.7%
|
|
34.42
|
|
1.7%
|
|
270
|
bps
|
|
7.5%
|
|
|
Econo
Lodge
|
|
55.76
|
|
48.7%
|
|
27.13
|
|
54.75
|
|
47.2%
|
|
25.83
|
|
1.8%
|
|
150
|
bps
|
|
5.0%
|
|
|
Rodeway
|
|
53.59
|
|
51.3%
|
|
27.48
|
|
52.13
|
|
48.6%
|
|
25.33
|
|
2.8%
|
|
270
|
bps
|
|
8.5%
|
|
|
MainStay
|
|
69.27
|
|
70.4%
|
|
48.79
|
|
66.17
|
|
67.1%
|
|
44.38
|
|
4.7%
|
|
330
|
bps
|
|
9.9%
|
|
|
Suburban
|
|
41.24
|
|
69.9%
|
|
28.82
|
|
40.24
|
|
67.7%
|
|
27.25
|
|
2.5%
|
|
220
|
bps
|
|
5.8%
|
|
|
Ascend
Collection
|
|
112.27
|
|
63.5%
|
|
71.25
|
|
109.82
|
|
59.9%
|
|
65.81
|
|
2.2%
|
|
360
|
bps
|
|
8.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
73.65
|
|
55.5%
|
|
$
40.89
|
|
$ 71.78
|
|
53.3%
|
|
$ 38.24
|
|
2.6%
|
|
220
|
bps
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Operating statistics represent hotel operations from December through
August
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended September 30, 2012*
|
|
For
the Three Months Ended September 30, 2011*
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
Average
Daily
|
|
|
|
|
|
|
|
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
Rate
|
|
Occupancy
|
|
RevPAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
$
87.58
|
|
70.2%
|
|
$
61.46
|
|
$ 85.05
|
|
68.6%
|
|
$ 58.31
|
|
3.0%
|
|
160
|
bps
|
|
5.4%
|
|
|
Comfort
Suites
|
|
89.69
|
|
70.2%
|
|
62.93
|
|
87.23
|
|
67.8%
|
|
59.13
|
|
2.8%
|
|
240
|
bps
|
|
6.4%
|
|
|
Sleep
|
|
76.09
|
|
64.8%
|
|
49.32
|
|
73.15
|
|
62.9%
|
|
46.02
|
|
4.0%
|
|
190
|
bps
|
|
7.2%
|
|
|
Quality
|
|
75.02
|
|
61.2%
|
|
45.88
|
|
72.90
|
|
59.8%
|
|
43.60
|
|
2.9%
|
|
140
|
bps
|
|
5.2%
|
|
|
Clarion
|
|
79.73
|
|
58.7%
|
|
46.82
|
|
78.13
|
|
55.1%
|
|
43.01
|
|
2.0%
|
|
360
|
bps
|
|
8.9%
|
|
|
Econo
Lodge
|
|
60.60
|
|
57.7%
|
|
34.97
|
|
59.32
|
|
56.4%
|
|
33.45
|
|
2.2%
|
|
130
|
bps
|
|
4.5%
|
|
|
Rodeway
|
|
59.62
|
|
60.8%
|
|
36.23
|
|
58.23
|
|
58.8%
|
|
34.22
|
|
2.4%
|
|
200
|
bps
|
|
5.9%
|
|
|
MainStay
|
|
73.17
|
|
76.5%
|
|
55.96
|
|
69.45
|
|
77.3%
|
|
53.68
|
|
5.4%
|
|
(80)
|
bps
|
|
4.2%
|
|
|
Suburban
|
|
42.62
|
|
75.1%
|
|
32.03
|
|
41.00
|
|
72.8%
|
|
29.85
|
|
4.0%
|
|
230
|
bps
|
|
7.3%
|
|
|
Ascend
Collection
|
|
115.98
|
|
71.4%
|
|
82.77
|
|
113.61
|
|
67.3%
|
|
76.50
|
|
2.1%
|
|
410
|
bps
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
78.63
|
|
65.0%
|
|
$
51.09
|
|
$ 76.53
|
|
63.2%
|
|
$ 48.39
|
|
2.7%
|
|
180
|
bps
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Operating statistics represent hotel operations from June through August
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Quarter Ended
|
|
|
|
For
the Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/2012
|
|
9/30/2011
|
|
|
|
9/30/2012
|
|
9/30/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide
effective royalty rate
|
|
4.29%
|
|
4.29%
|
|
|
|
4.31%
|
|
4.32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
Exhibit
5
|
SUPPLEMENTAL
HOTEL AND ROOM SUPPLY DATA
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, 2012
|
|
September
30, 2011
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
Hotels
|
|
Rooms
|
|
%
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
1,367
|
|
106,970
|
|
1,413
|
|
110,652
|
|
(46)
|
|
(3,682)
|
|
(3.3%)
|
|
(3.3%)
|
|
Comfort
Suites
|
|
603
|
|
46,647
|
|
616
|
|
47,667
|
|
(13)
|
|
(1,020)
|
|
(2.1%)
|
|
(2.1%)
|
|
Sleep
|
|
390
|
|
28,232
|
|
392
|
|
28,431
|
|
(2)
|
|
(199)
|
|
(0.5%)
|
|
(0.7%)
|
|
Quality
|
|
1,101
|
|
95,469
|
|
1,037
|
|
90,368
|
|
64
|
|
5,101
|
|
6.2%
|
|
5.6%
|
|
Clarion
|
|
187
|
|
26,943
|
|
189
|
|
27,448
|
|
(2)
|
|
(505)
|
|
(1.1%)
|
|
(1.8%)
|
|
Econo
Lodge
|
|
803
|
|
49,248
|
|
782
|
|
48,381
|
|
21
|
|
867
|
|
2.7%
|
|
1.8%
|
|
Rodeway
|
|
409
|
|
23,336
|
|
378
|
|
20,820
|
|
31
|
|
2,516
|
|
8.2%
|
|
12.1%
|
|
MainStay
|
|
39
|
|
2,997
|
|
39
|
|
3,027
|
|
-
|
|
(30)
|
|
0.0%
|
|
(1.0%)
|
|
Suburban
|
|
60
|
|
6,978
|
|
58
|
|
6,934
|
|
2
|
|
44
|
|
3.4%
|
|
0.6%
|
|
Ascend
Collection
|
|
56
|
|
4,946
|
|
46
|
|
4,084
|
|
10
|
|
862
|
|
21.7%
|
|
21.1%
|
|
Cambria
Suites
|
|
19
|
|
2,221
|
|
19
|
|
2,215
|
|
-
|
|
6
|
|
0.0%
|
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Franchises
|
|
5,034
|
|
393,987
|
|
4,969
|
|
390,027
|
|
65
|
|
3,960
|
|
1.3%
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Franchises
|
|
1,165
|
|
102,942
|
|
1,169
|
|
103,473
|
|
(4)
|
|
(531)
|
|
(0.3%)
|
|
(0.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Franchises
|
|
6,199
|
|
496,929
|
|
6,138
|
|
493,500
|
|
61
|
|
3,429
|
|
1.0%
|
|
0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit
6
|
|
CHOICE
HOTELS INTERNATIONAL, INC.
|
SUPPLEMENTAL
INFORMATION BY BRAND
|
DEVELOPMENT
RESULTS -- DOMESTIC NEW HOTEL CONTRACTS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Nine Months Ended September 30, 2012
|
|
For
the Nine Months Ended September 30, 2011
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
10
|
|
17
|
|
27
|
|
6
|
|
28
|
|
34
|
|
67%
|
|
(39%)
|
|
(21%)
|
|
Comfort
Suites
|
|
11
|
|
4
|
|
15
|
|
7
|
|
4
|
|
11
|
|
57%
|
|
0%
|
|
36%
|
|
Sleep
|
|
17
|
|
1
|
|
18
|
|
6
|
|
1
|
|
7
|
|
183%
|
|
0%
|
|
157%
|
|
Quality
|
|
-
|
|
88
|
|
88
|
|
-
|
|
49
|
|
49
|
|
NM
|
|
80%
|
|
80%
|
|
Clarion
|
|
-
|
|
14
|
|
14
|
|
-
|
|
12
|
|
12
|
|
NM
|
|
17%
|
|
17%
|
|
Econo
Lodge
|
|
-
|
|
33
|
|
33
|
|
-
|
|
36
|
|
36
|
|
NM
|
|
(8%)
|
|
(8%)
|
|
Rodeway
|
|
-
|
|
46
|
|
46
|
|
-
|
|
32
|
|
32
|
|
NM
|
|
44%
|
|
44%
|
|
MainStay
|
|
2
|
|
1
|
|
3
|
|
1
|
|
3
|
|
4
|
|
100%
|
|
(67%)
|
|
(25%)
|
|
Suburban
|
|
1
|
|
1
|
|
2
|
|
2
|
|
2
|
|
4
|
|
(50%)
|
|
(50%)
|
|
(50%)
|
|
Ascend
Collection
|
|
1
|
|
8
|
|
9
|
|
2
|
|
9
|
|
11
|
|
(50%)
|
|
(11%)
|
|
(18%)
|
|
Cambria
Suites
|
|
4
|
|
-
|
|
4
|
|
4
|
|
-
|
|
4
|
|
0%
|
|
NM
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic System
|
|
46
|
|
213
|
|
259
|
|
28
|
|
176
|
|
204
|
|
64%
|
|
21%
|
|
27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the Three Months Ended September 30, 2012
|
|
For
the Three Months Ended September 30, 2011
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
New
|
|
|
|
|
|
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
Construction
|
|
Conversion
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
4
|
|
5
|
|
9
|
|
1
|
|
10
|
|
11
|
|
300%
|
|
(50%)
|
|
(18%)
|
|
Comfort
Suites
|
|
4
|
|
-
|
|
4
|
|
6
|
|
-
|
|
6
|
|
(33%)
|
|
NM
|
|
(33%)
|
|
Sleep
|
|
6
|
|
-
|
|
6
|
|
3
|
|
-
|
|
3
|
|
100%
|
|
NM
|
|
100%
|
|
Quality
|
|
-
|
|
25
|
|
25
|
|
-
|
|
14
|
|
14
|
|
NM
|
|
79%
|
|
79%
|
|
Clarion
|
|
-
|
|
7
|
|
7
|
|
-
|
|
4
|
|
4
|
|
NM
|
|
75%
|
|
75%
|
|
Econo
Lodge
|
|
-
|
|
15
|
|
15
|
|
-
|
|
18
|
|
18
|
|
NM
|
|
(17%)
|
|
(17%)
|
|
Rodeway
|
|
-
|
|
15
|
|
15
|
|
-
|
|
14
|
|
14
|
|
NM
|
|
7%
|
|
7%
|
|
MainStay
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
NM
|
|
Suburban
|
|
1
|
|
-
|
|
1
|
|
-
|
|
1
|
|
1
|
|
NM
|
|
(100%)
|
|
0%
|
|
Ascend
Collection
|
|
-
|
|
4
|
|
4
|
|
2
|
|
4
|
|
6
|
|
(100%)
|
|
0%
|
|
(33%)
|
|
Cambria
Suites
|
|
2
|
|
-
|
|
2
|
|
2
|
|
-
|
|
2
|
|
0%
|
|
NM
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Domestic System
|
|
18
|
|
71
|
|
89
|
|
14
|
|
65
|
|
79
|
|
29%
|
|
9%
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
September
30, 2012
|
|
September
30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units
|
|
Units
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Conversion
|
|
New
Construction
|
|
Total
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
Units
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comfort
Inn
|
|
23
|
|
39
|
|
62
|
|
23
|
|
47
|
|
70
|
|
-
|
|
0%
|
|
(8)
|
|
(17%)
|
|
(8)
|
|
(11%)
|
Comfort
Suites
|
|
1
|
|
77
|
|
78
|
|
1
|
|
105
|
|
106
|
|
-
|
|
0%
|
|
(28)
|
|
(27%)
|
|
(28)
|
|
(26%)
|
Sleep
|
|
1
|
|
38
|
|
39
|
|
-
|
|
62
|
|
62
|
|
1
|
|
NM
|
|
(24)
|
|
(39%)
|
|
(23)
|
|
(37%)
|
Quality
|
|
37
|
|
3
|
|
40
|
|
29
|
|
5
|
|
34
|
|
8
|
|
28%
|
|
(2)
|
|
(40%)
|
|
6
|
|
18%
|
Clarion
|
|
18
|
|
1
|
|
19
|
|
10
|
|
1
|
|
11
|
|
8
|
|
80%
|
|
-
|
|
0%
|
|
8
|
|
73%
|
Econo
Lodge
|
|
23
|
|
1
|
|
24
|
|
31
|
|
1
|
|
32
|
|
(8)
|
|
(26%)
|
|
-
|
|
0%
|
|
(8)
|
|
(25%)
|
Rodeway
|
|
25
|
|
-
|
|
25
|
|
18
|
|
1
|
|
19
|
|
7
|
|
39%
|
|
(1)
|
|
(100%)
|
|
6
|
|
32%
|
MainStay
|
|
1
|
|
18
|
|
19
|
|
3
|
|
28
|
|
31
|
|
(2)
|
|
(67%)
|
|
(10)
|
|
(36%)
|
|
(12)
|
|
(39%)
|
Suburban
|
|
2
|
|
14
|
|
16
|
|
1
|
|
20
|
|
21
|
|
1
|
|
100%
|
|
(6)
|
|
(30%)
|
|
(5)
|
|
(24%)
|
Ascend
Collection
|
|
9
|
|
4
|
|
13
|
|
7
|
|
5
|
|
12
|
|
2
|
|
29%
|
|
(1)
|
|
(20%)
|
|
1
|
|
8%
|
Cambria
Suites
|
|
-
|
|
25
|
|
25
|
|
-
|
|
32
|
|
32
|
|
-
|
|
NM
|
|
(7)
|
|
(22%)
|
|
(7)
|
|
(22%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
140
|
|
220
|
|
360
|
|
123
|
|
307
|
|
430
|
|
17
|
|
14%
|
|
(87)
|
|
(28%)
|
|
(70)
|
|
(16%)
|
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|
|
|
|
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CHOICE
HOTELS INTERNATIONAL, INC.
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Exhibit
8
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SUPPLEMENTAL
NON-GAAP FINANCIAL INFORMATION
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|
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(UNAUDITED)
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CALCULATION
OF FRANCHISING REVENUES AND FRANCHISING MARGINS
|
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(dollar
amounts in thousands)
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|
Three
Months Ended September 30,
|
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Nine
Months Ended September 30,
|
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2012
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2011
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2012
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2011
|
|
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Franchising
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total
Revenues
|
|
$
210,413
|
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$
192,321
|
|
$
513,203
|
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$
472,903
|
|
|
|
Adjustments:
|
|
|
|
|
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|
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|
|
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Marketing and reservation revenues
|
|
(119,062)
|
|
(104,393)
|
|
(284,624)
|
|
(258,192)
|
|
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Hotel
operations
|
|
(1,238)
|
|
(1,236)
|
|
(3,440)
|
|
(3,173)
|
|
|
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Franchising
Revenues
|
|
$
90,113
|
|
$
86,692
|
|
$
225,139
|
|
$
211,538
|
|
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|
|
|
|
|
|
|
|
|
|
Franchising
Margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
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Total
Revenues
|
|
$
210,413
|
|
$
192,321
|
|
$
513,203
|
|
$
472,903
|
|
|
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Operating
Income
|
|
$
65,253
|
|
$
62,400
|
|
$
147,908
|
|
$
133,201
|
|
|
|
Operating Margin
|
|
31.0%
|
|
32.4%
|
|
28.8%
|
|
28.2%
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Franchising
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising
Revenues
|
|
$
90,113
|
|
$
86,692
|
|
$
225,139
|
|
$
211,538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
$
65,253
|
|
$
62,400
|
|
$
147,908
|
|
$
133,201
|
|
|
|
Hotel
operations
|
|
(305)
|
|
(336)
|
|
(831)
|
|
(580)
|
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$
64,948
|
|
$
62,064
|
|
$
147,077
|
|
$
132,621
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchising Margins
|
|
72.1%
|
|
71.6%
|
|
65.3%
|
|
62.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
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|
|
EBITDA
Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(in
millions)
|
|
|
|
|
|
|
|
|
|
|
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Q3
2012 Actuals
|
|
Q3
2011 Actuals
|
|
Nine
Months Ended
September
30, 2012
Actuals
|
|
Nine
Months Ended September 30, 2011 Actuals
|
|
Full-Year
2012
Outlook
|
|
|
|
|
|
|
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|
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Operating
Income (per GAAP)
|
|
$
65.3
|
|
$ 62.4
|
|
$
147.9
|
|
$ 133.2
|
|
$192.9 - $194.4
|
|
Depreciation
and amortization
|
|
2.0
|
|
2.1
|
|
6.0
|
|
6.0
|
|
8.1
|
|
Earnings
before interest, taxes, depreciation & amortization (non-GAAP)
|
|
$
67.3
|
|
$ 64.5
|
|
$
153.9
|
|
$ 139.2
|
|
$201
- $202.5
|
|
|
|
|
|
|
|
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|