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8-K - FORM 8-K - CHOICE HOTELS INTERNATIONAL INC /DE | d360068d8k.htm |
Investor Presentation
June 2012
Exhibit 99.1 |
2
DISCLAIMER
2
Certain matters discussed throughout all of this presentation constitute forward-looking
statements within the meaning of the federal securities laws. 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 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements are based on managements 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 for the companys
revenue, earnings and other financial and operational measures, company debt levels, payment of
dividends and future operations. We caution you not to place undue reliance on any
forward-looking statements, which are made as of the date of this presentation. 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
hotel rooms; and our ability to effectively manage our indebtedness. These and other risk
factors are discussed in detail in the Risk Factors section of the companys 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. |
3
CHOICE HOTELS OVERVIEW
Growing US hotel market share*
9.6% share of branded US hotels (+80 basis
points over trailing 5 years)*
2
nd
largest U.S. hotelier
70+ year-old hotel distribution company
with well-known, diversified brands
suitable for various stages of hotel life
cycle
Core competencies and services drive
demand for our brands and deliver
business for our franchisees
Global pipeline of 471 hotels under
construction, awaiting conversion or
approved for development
Source: Choice Internal Data, March 31, 2012 and December 31, 2011
* Based on number of hotels as March 31, 2012 (Smith Travel Research)
Fee-for-service business model
Predictable, profitable, long-term growth
in a variety of lodging and economic
environments
Cumulative free cash flows of
approximately $1.4 billion from 1997
through 2011.
100% returned to shareholders through
share repurchases and dividends
Capital light
model generates strong
after-tax returns on invested capital
Long-term franchise contracts and scale
represent barriers to entry
Strong, Growing, Global Hotel
Franchising Business
Highly Attractive Business Model
With Strong Financial Returns
3 |
4
Source: Smith Travel Research, March 31, 2012
ONE OF THE LARGEST HOTELIERS
Market
Share %
11.2%
9.6%
6.3%
6.0%
5.9%
3.8%
2.0%
1.1%
0.9%
0.7%
5 yr. bps
(07-12)
-10
+80
+110
+30
+80
-70
+30
-50
+20
-70
Market Share (% of Hotels Open in U.S.)
4
0
2
4
6
8
10
12
Wyndham
Choice
Hilton
IHG
Marriott
Best Western
Accor
Carlson
Starwood
Hyatt
Q1 2007
Q1 2008
Q1 2009
Q1 2010
Q1 2011
Q1 2012 |
5
5
Conversion
$42,000+
$120,000+
$50
$70
$100+
Targeted
Average Daily Rate
$85
FAMILY OF WELL-KNOWN
AND DIVERSIFIED BRANDS
New Construction
* Excludes cost of land; based on average domestic per-room investment.
Source: Choice Internal Data, April 2012 |
6
6
STRONG LIMITED SERVICE
NEW CONSTRUCTION BRANDS
POSITIONED WELL FOR LONG-TERM GROWTH
Source: Smith Travel Research, Choice Internal Data, March 31, 2012
Hampton
Inn / Inn &
Suites
Holiday Inn
Express
La Quinta
Inn / Inn &
Suites
Fairfield Inn
Country Inn
& Suites
Domestic Hotels |
7
7
SIGNIFICANT GROWTH OPPORTUNITIES
REMAIN IN LARGE CONVERSION MARKET
Chart does not include
independent hotels
in budget, economy and
mid-scale
segments
Domestic Hotels
Hampton Inn /
Hampton Inn
& Suites
Holiday Inn
Express
Days Inn
Motel 6
Americas
Best
Value Inn
Holiday
Inn /
Holiday
Inn Select
La Quinta
Inn / La Quinta
Inn & Suites
Fairfield
Inn
Ramada /
Ramada
Plaza
Travelodge
Red Roof
Inn
Howard
Johnson
Knights
Inn
Microtel
Best
Western
Super 8
Source: Smith Travel Research, Choice Internal Data, March 31, 2012
® |
8
8
DOMESTIC PIPELINE OF 388 HOTELS
Mid-scale
Extended Stay
Economy
Upscale
Source: Choice Internal Data, March 31, 2012 |
9
9
SERVICES LIFECYCLE IMPROVES
BRANDS AND PROPERTY PERFORMANCE
Brand Planning
and Management
Brand Performance
Revenue and guest service
consulting
Inventory and rate management
Local sales and marketing
Independent third-party quality
assurance
Training
On-site
Regional
Web-based
GM Certification
Opening Services
Ensure hotels open
successfully and meet or
exceed brand standards
Portfolio
Management
Repositioning
Relicensing
Termination
Procurement Services
Value-engineered prototypes
and design packages
Negotiated vendor
relationships
Targeted, differentiated
programs, amenities and
services for each brand
FRANCHISED
FRANCHISED
PROPERTIES
PROPERTIES
RETURN ON
RETURN ON
INVESTMENT
INVESTMENT |
10
10
1,168 properties in approximately
30 countries and territories on five
continents
Multi-year
investments in
IT and marketing
planned to enhance
value proposition for
international hotels
STRONG PRESENCE IN MAJOR
TRAVEL MARKETS OUTSIDE OF THE U.S.
Source: Choice Internal Data, March 31, 2012
307 hotels
Canada
160 hotels
Scandinavia
3 hotels
China
52 hotels
Japan
251 hotels
Continental
Europe, UK
& Ireland
23 hotels
Mexico
15 hotels
Central
America
59 hotels
Brazil
1 hotel
Jordan
27 hotels
India
1 hotel
Singapore
1 hotel
Malaysia
268 hotels
Australia & New
Zealand
Significant long-
term growth
opportunity in
underrepresented
regions/countries |
11
11
MARKETING AND CENTRAL
RESERVATION SYSTEM LEVERAGES
SIZE, SCALE AND DISTRIBUTION
$300-plus million in annual marketing and reservation system fees
Leverage expertise and innovation in on-line, targeted interactive
marketing to influence guest hotel stay decisions
Powerful advertising campaigns
Focus on driving guests to Choice central channels
Facilitate one-stop
shopping
Strong and growing global loyalty program
Increasing brand awareness
Source: Choice Internal Data, December 2011 |
12
12
STRONG AND GROWING
AIDED BRAND AWARENESS
Source: Percentage of survey respondents. Millward Brown, December 2011.
*Econo Lodge, Rodeway Inn and Suburban Extended Stay measured among economy hotel
users. N/A
N/A
N/A
N/A |
13
13
STRONG, GROWING LOYALTY PROGRAM
Choice Privileges Revenue as Percent
of Domestic Gross Room Revenues*
Source: Choice Internal Data, December 31, 2011
* 2001-2008 Data Excludes Econo Lodge and Rodeway Inn brands
Comprehensive loyalty rewards program
14 million members worldwide
contribute over ¼
of domestic
gross room revenues
2.1 million new members added in 2011
Delivers incremental business to all Choice brand hotels
Important selling point for franchise sales |
14
14
CENTRAL RESERVATIONS SYSTEM (CRS)
DELIVERY PUTS HEADS IN BEDS
All Hotel
Direct
Reservation
Choice Central
Reservation
Contribution
1/3
1/3
Domestic Franchise System
Gross Room Revenue Source
Domestic Choice CRS
Net Room Revenue
Source: Choice Internal Data, December 31, 2011 |
15
15
Central Channel ADR
Premium
Domestic Choice CRS
Net Channel Share
CENTRAL RESERVATIONS BOOKINGS
CREATE SIGNIFICANT VALUE
FOR FRANCHISEES
Source: Choice Internal Data, December 2011
$68.42
$71.93
$74.53
$76.90
$77.56
$82.31
2006
2007
2008
2009
2010
2011
Systemwide
Call Center
choicehotels.com |
16
CONVERSION BRAND FRANCHISE
SALES OPPORTUNITY IN SOFT NEW CONSTRUCTION
ENVIRONMENT
Source: Choice Internal Data, December 31, 2011 |
17
STRONG, STEADY FRANCHISE
SYSTEM GROWTH
Domestic Hotels On-Line
Domestic Rooms On-Line
(in thousands)
CAGR = 4.2%
CAGR = 3.5%
CAGR = 3.8%
CAGR = 3.0%
Source: Choice Internal Data, December 31, 2011 |
18
18
FRANCHISING REVENUE STREAM
LESS VOLATILE THAN REVPAR
$0
$50
$100
$150
$200
$250
$300
$350
-17%
-12%
-7%
-2%
3%
8%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
CHH RevPAR
STR Chain Scale (Supply Weighted)
Industry RevPAR
CHH Franchising Revenue
($ in millions)
Source: Smith Travel Research, Choice Internal Data, December 2011
|
19
19
ADJUSTED EBITDA LESS VOLATILE
THAN INDUSTRY PROFITABILITY
Source: Smith Travel Research, Choice Internal Data, December 2011
($ in millions)
($ in billions)
0
50
100
150
200
250
0
5
10
15
20
25
30
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Industry Profits
CHH Adjusted EBITDA |
20
20
CAPITAL LIGHT
MODEL GENERATES
STRONG RETURNS ON INVESTED CAPITAL
15.2%
16.1%
14.7%
19.5%
27.6%
36.7%
49.7%
62.9%
78.5%
68.8%
59.5%
48.1%
48.0%
47.2%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
After-Tax Return On Invested Capital
Source: Choice Internal Data, December 2011 |
21
21
TRACK RECORD OF STRONG EARNINGS
PER SHARE PERFORMANCE
Adjusted Diluted Earnings Per Share
Note: See appendix for reconciliation of adjusted diluted earnings per share to
diluted earnings per share. To improve comparability certain employee severance
amounts included in the determination of adjusted diluted earnings per share in
this presentation for 2007 through 2011 differ from amounts reported in
Exhibits 8 of our various earnings announcements.
Source: Choice Internal Data, December 2011. Per Share Amounts Retroactively
Adjusted For 2005 Stock Split. 1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$0.40
$0.51
$0.51
$0.58
$0.76
$0.93
$1.07
$1.25
$1.48
$1.73
$1.73
$1.68
$1.81
$1.90 |
22
22
Remaining authority on current authorization
1.6 million shares as of March 31, 2012
OPPORTUNISTIC SHARE REPURCHASES KEY
PART OF CAPITAL ALLOCATION STRATEGY
Source: Capital IQ, December 2011, Choice Internal Data, March 31, 2012 and
December 31, 2011. Share amounts for 2005 and prior years retroactively
adjusted for 2005 two-for-one stock split. |
23
23
HIGH CASH DIVIDEND YIELD COMPARED
TO OTHER LODGING C-CORPS
Source: Thomson One, May 31, 2012
Choice
Great
Wolf
Wyndham
Gaylord
Hyatt
Orient-
Express
Starwood
Red Lion
Marriott
IHG |
24
24
STRATEGY FOR CHOICES BRANDS,
GROWTH AND SHAREHOLDERS
Improve and Grow Brands
Increase portfolio profitability of the Comfort brand family
Refresh Sleep Inn to improve long-term brand growth potential
Invest
in
and
expand
emerging
brands/segments
Cambria,
Ascend,
International
Capture Greater Share of Reservations Via Central Channels
Grow
Choice
Privileges
loyalty
program
target
2.0
million
new
members
in
2012
Continue to enhance ChoiceHotels.com to increase traffic and conversion
Allocate Free Cash Flows To Best And Highest
Use
Continue shareholder-friendly capital allocation policies
Leverage financial capacity/strength to support expansion of emerging brands
Evaluate opportunities to enter new segments
Invest in IT infrastructure to shore up value proposition for international
properties |
25
25
Appendix
Reconciliation of Non-GAAP
Financial Measurements to GAAP |
26
26
DISCLAIMER
Adjusted
franchising
margins,
adjusted
earnings
before
interest,
taxes
depreciation and amortization (EBITDA), adjusted net income, adjusted diluted
earnings per share (EPS), franchising revenues, net operating profit after
tax (NOPAT),
return
on
average
invested
capital
(ROIC)
and
free
cash
flows
are
non-
GAAP financial measurements. These financial measurements are presented as
supplemental disclosures because they are used by management in reviewing
and analyzing the companys performance. 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, net income, diluted earnings per share, total revenues
or net cash
provided
by
operating
activities.
The
calculation
of
these
non-GAAP
measures may be different from the calculation by other companies and therefore
comparability may be limited. The company has included the following
appendix which reconcile these measures to the comparable GAAP
measurement. |
27
27
FRANCHISING REVENUES AND ADJUSTED
FRANCHISING MARGINS
Note: To improve comparability certain employee severance amounts included in the
determination of adjusted franchising margins in this presentation for 2007
through 2011 differ from amounts reported in exhibit 8 of our year-end earnings
announcements for those years. Source: Choice Internal Data, December
2011 ($ amounts in thousands)
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
2011
2010
2009
2008
2007
2006
2005
Total Revenues
638,793
$
596,076
$
564,178
$
641,680
$
615,494
$
539,903
$
472,098
$
Adjustments:
Marketing and Reservation
(349,036)
(329,246)
(305,379)
(336,477)
(316,827)
(273,267)
(237,822)
Product Sales
-
-
-
-
-
-
-
Hotel Operations
(4,356)
(4,031)
(4,140)
(4,936)
(4,692)
(4,505)
(4,293)
Franchising Revenues
285,401
$
262,799
$
254,659
$
300,267
$
293,975
$
262,131
$
229,983
$
Operating Income
171,863
$
160,762
$
148,073
$
174,596
$
185,199
$
166,625
$
143,750
$
Adjustments
Hotel Operations
(890)
(845)
(987)
(1,502)
(1,451)
(1,311)
(1,068)
Acceleration of Management Succession Plan
-
-
-
6,605
-
-
-
Executive Termination Benefits
2,704
1,217
3,321
-
3,690
-
-
Curtailment of SERP
-
-
1,209
-
-
-
-
Loss on Sublease of Office Space
-
-
1,503
-
-
-
-
Loan Reserves Related to Impaired Notes Receivable
-
-
-
7,555
-
-
-
Product Sales
-
-
-
-
-
-
-
Impairment of Friendly Investment
-
-
-
-
-
-
-
Net
173,677
$
161,134
$
153,119
$
187,254
$
187,438
$
165,314
$
142,682
$
Adjusted Franchising Margin
60.9%
61.3%
60.1%
62.4%
63.8%
63.1%
62.0% |
28
28
FRANCHISING REVENUES AND ADJUSTED
FRANCHISING MARGINS
(Continued)
Source: Choice Internal Data, December 2011
($ amounts in thousands)
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
2004
2003
2002
2001
2000
1999
1998
Total Revenues
428,208
$
385,866
$
365,562
$
341,428
$
352,841
$
324,203
$
165,474
$
Adjustments:
Marketing and Reservation
(220,732)
(195,219)
(190,145)
(168,170)
(185,367)
(162,603)
-
Product Sales
-
-
-
-
-
(3,871)
(20,748)
Hotel Operations
(3,729)
(3,565)
(3,331)
(3,215)
(1,249)
-
(1,098)
Franchising Revenues
203,747
$
187,082
$
172,086
$
170,043
$
166,225
$
157,729
$
143,628
$
Operating Income
124,983
$
113,946
$
104,700
$
73,577
$
92,427
$
94,170
$
85,151
$
Adjustments
Hotel Operations
(725)
(842)
(385)
(714)
(640)
-
35
Acceleration of Management
Succession Plan -
-
-
-
-
-
-
Executive Termination Benefits
-
-
-
-
-
-
-
Curtailment of SERP
-
-
-
-
-
-
-
Loss on Sublease of Office
Space -
-
-
-
-
-
-
Loan Reserves Related to Impaired
Notes Receivable -
-
-
-
-
-
-
Product Sales
-
-
-
-
-
12
(1,216)
Impairment of Friendly Investment
-
-
-
22,713
-
-
-
Net
124,258
$
113,104
$
104,315
$
95,576
$
91,787
$
94,182
$
83,970
$
Adjusted Franchising Margin
61.0%
60.5%
60.6%
56.2%
55.2%
59.7%
58.5% |
29
29
RETURN ON INVESTED CAPITAL
(a) Operating income and tax rate for the year ended December 31, 2001 have been
adjusted to exclude the effect of a $22.7 million impairment charge related
to the write-off of the companys investment in Friendly Hotels.
Source: Choice Internal Data, December 2011
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
($ in thousands)
2011
2010
2009
2008
2007
2006
2005
Operating Income (a)
$171.9
$160.8
$148.1
$174.6
$185.2
$166.6
$143.8
Tax Rate(a)
30.1%
32.1%
34.8%
36.3%
36.0%
27.4%
33.0%
After-Tax Operating Income
120.2
109.2
96.6
111.2
118.5
121.0
96.3
+ Depreciation & Amortization
8.0
8.3
8.3
8.2
8.6
9.7
9.1
- Maintenance CAPEX
8.0
8.3
8.3
8.2
8.6
9.7
9.1
Net Op. Profit After-tax (NOPAT)
$120.2
$109.2
$96.6
$111.2
$118.5
$121.0
$96.3
Total Assets
$447.7
$411.7
$340.0
$328.2
$328.4
$303.3
$265.3
- Current Liabilities
184.6
165.3
131.8
135.1
147.5
139.8
120.3
Invested Capital
$263.1
$246.4
$208.2
$193.1
$180.9
$163.5
$145.0
Return on Average Invested Capital
47.2%
48.0%
48.1%
59.5%
68.8%
78.5%
62.9% |
30
30
RETURN ON INVESTED CAPITAL (Continued)
(a) Operating income and tax rate for the year ended December 31, 2001 have been
adjusted to exclude the effect of a $22.7 million impairment charge related
to the write-off of the companys investment in Friendly Hotels.
Source: Choice Internal Data, December 2011
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
($ in thousands)
2004
2003
2002
2001
2000
1999
1998
Operating Income (a)
$125.0
$113.9
$104.7
$96.3
$92.4
$94.2
$85.2
Tax Rate(a)
35.1%
36.1%
36.5%
35.0%
39.0%
39.5%
41.7%
After-Tax Operating Income
81.1
72.8
66.5
62.6
56.4
57.0
49.7
+ Depreciation & Amortization
9.9
11.2
11.3
12.5
11.6
7.7
6.7
- Maintenance CAPEX
9.9
11.2
11.3
12.5
11.6
7.7
6.7
Net Op. Profit After-tax (NOPAT)
$81.1
$72.8
$66.5
$62.6
$56.4
$57.0
$49.7
Total Assets
$263.4
$267.3
$316.8
$321.2
$484.1
$464.7
$398.2
- Current Liabilities
102.1
102.2
84.3
71.2
93.8
88.7
64.7
Invested Capital
$161.3
$165.1
$232.5
$250.0
$390.3
$375.9
$333.6
Return on Average Invested Capital
49.7%
36.7%
27.6%
19.5%
14.7%
16.1%
15.2% |
31
31
FREE CASH FLOWS
Source: Choice Internal Data, December 2011
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
($ in thousands)
2011
2010
2009
2008
2007
2006
2005
Net Cash Provided by Operating Activities
134,844
$
144,935
$
112,216
$
104,399
$
145,666
$
153,680
$
133,588
$
Net Cash Provided (Used) by Investing Activities
(23,804)
(32,155)
(3,349)
(20,265)
(21,284)
(17,244)
(24,531)
Free Cash Flows
111,040
$
112,780
$
108,867
$
84,134
$
124,382
$
136,436
$
109,057
$ |
32
32
FREE CASH FLOWS (Continued)
Source: Choice Internal Data, December 2011
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
($ in thousands)
2004
2003
2002
2001
2000
1999
1998
Net Cash Provided by Operating Activities
108,908
$
115,304
$
99,018
$
101,712
$
53,879
$
65,040
$
38,952
$
Net Cash Provided (Used) by Investing Activities
(14,544)
27,784
(14,683)
87,738
(16,617)
(36,031)
(9,056)
Free Cash Flows
94,364
$
143,088
$
84,335
$
189,450
$
37,262
$
29,009
$
29,896
$ |
33
33
Note: To improve comparability certain employee severance amounts included in the
determination of adjusted EBITDA in this presentation for 2007 through 2011
differ from amounts reported in exhibits 8 of our various earnings announcements.
Source: Choice Internal Data, December 2011
ADJUSTED EBITDA
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
($ in thousands)
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
2011
2010
2009
2008
2007
2006
2005
Operating Income
171,863
$
160,762
$
148,073
$
174,596
$
185,199
$
166,625
$
143,750
$
Adjustments
Acceleration of Management Succession Plan
-
-
-
6,605
-
-
-
Loss on Sublease of Office Space
-
-
1,503
-
-
-
-
Executive Termination Benefits
2,704
1,217
3,321
-
3,690
-
-
Curtailment of SERP
-
-
1,209
-
-
-
-
Loan Reserves Related to Impaired Notes Receivable
-
-
-
7,555
-
-
-
Product Sales
-
-
-
-
-
-
-
Impairment of Friendly investment
-
-
-
-
-
-
-
Depreciation and Amortization
8,024
8,342
8,336
8,184
8,637
9,705
9,051
Adjusted EBITDA
182,591
$
170,321
$
162,442
$
196,940
$
197,526
$
176,330
$
152,801
$ |
34
34
ADJUSTED EBITDA (Continued)
Source: Choice Internal Data, December 2011
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
($ in thousands)
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
2004
2003
2002
2001
2000
1999
1998
Operating Income
124,983
$
113,946
$
104,700
$
73,577
$
92,427
$
94,170
$
85,151
$
Adjustments
Acceleration of Management Succession Plan
-
-
-
-
-
-
-
Loss on Sublease of Office Space
-
-
-
-
-
-
-
Executive Termination Benefits
-
-
-
-
-
-
-
Curtailment of SERP
-
-
-
-
-
-
-
Loan Reserves Related to Impaired Notes Receivable
-
-
-
-
-
-
-
Product Sales
-
-
-
-
-
12
(1,216)
Impairment of Friendly investment
-
-
-
22,713
-
-
-
Depreciation and Amortization
9,947
11,225
11,251
12,452
11,623
7,687
6,710
Adjusted EBITDA
134,930
$
125,171
$
115,951
$
108,742
$
104,050
$
101,869
$
90,645
$ |
35
35
ADJUSTED DILUTED EARNINGS PER SHARE
Note: To improve comparability certain employee severance amounts included in the
determination of adjusted franchising margins in this presentation for 2007
through 2011 differ from amounts reported in exhibit 8 of our year-end earnings
announcements for those years. Source: Choice Internal Data, December
2011 Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
(In thousands, except per share amounts)
2011
2010
2009
2008
2007
2006
2005
Net Income
110,396
$
107,441
$
98,250
$
100,211
$
111,301
$
112,787
$
87,565
$
Adjustments:
Loss(Gain) on Extinguishment of Debt, Net of Taxes
-
-
-
-
-
217
-
Acceleration of Management Sucession Plan, Net of
Taxes -
-
-
4,135
-
-
-
Executive Termination Benefits, Net of Taxes
1,711
762
2,079
-
2,310
-
-
Loss on Land Held For Sale
1,119
-
-
-
-
-
-
Loss on Sublease of Office Space, Net of
Taxes -
-
941
-
-
-
-
Curtailment of SERP, Net of Taxes
-
-
757
-
-
-
-
Loan Reserves Related to Impaired Notes Receivable,
Net of Taxes -
-
-
4,729
-
-
-
Resolution of Provisions for Income Tax
Contingencies -
-
-
-
-
(12,791)
(4,855)
Income Tax Expense Incurred Due to Foreign Earnings Repatriation
-
-
-
-
-
-
1,192
Loss(Gain) on Sunburst Note Transactions, Net of Taxes
-
-
-
-
-
-
-
Impairment of and Equity Losses in Friendly Hotels
PLC Investment, Net of Taxes -
-
-
-
-
-
-
Adjusted Net Income
113,226
$
108,203
$
102,027
$
109,075
$
113,611
$
100,213
$
83,902
$
Weighted Average Shares Outstanding-Diluted
59,525
59,656
60,224
62,994
65,766
67,490
66,759
Diluted Earnings Per Share
1.85
$
1.80
$
1.63
$
1.59
$
1.69
$
1.67
$
1.31
$
Adjustments:
Loss(Gain) on Extinguishment of Debt, Net of Taxes
-
-
-
-
-
-
-
Acceleration of Management Sucession Plan, Net of
Taxes -
-
-
0.07
-
-
-
Executive Termination Benefits, Net of Taxes
0.03
0.01
0.02
-
0.04
-
-
Loss on Land Held For Sale
0.02
-
-
-
-
-
-
Loss on Sublease of Office Space, Net of
Taxes -
-
0.02
-
-
-
-
Curtailment of SERP, Net of Taxes
-
-
0.01
-
-
-
-
Loan Reserves Related to Impaired Notes Receivable,
Net of Taxes -
-
-
0.07
-
-
-
Resolution of Provisions for Income Tax
Contingencies -
-
-
-
-
(0.19)
(0.08)
Income Tax Expense Incurred Due to Foreign Earnings Repatriation
-
-
-
-
-
-
0.02
Loss(Gain) on Sunburst Note Transactions, Net of Taxes
-
-
-
-
-
-
-
Impairment of and Equity Losses in Friendly Hotels
PLC Investment, Net of Taxes -
-
-
-
-
-
-
Adjusted Diluted Earnings Per Share (EPS)
1.90
$
1.81
$
1.68
$
1.73
$
1.73
$
1.48
$
1.25
$
|
36
36
ADJUSTED DILUTED EARNINGS PER SHARE
(Continued)
Source: Choice Internal Data, December 2011
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
December 31,
(In thousands, except per share amounts)
2004
2003
2002
2001
2000
1999
1998
Net Income
74,345
$
71,863
$
60,844
$
14,327
$
42,445
$
57,155
$
55,305
$
Adjustments:
Loss(Gain) on Extinguishment of Debt, Net of Taxes
433
-
-
-
-
-
(7,232)
Acceleration of Management Sucession Plan, Net of Taxes
-
-
-
-
-
-
-
Executive Termination
Benefits, Net of Taxes -
-
-
-
-
-
-
Loss on Land Held For
Sale -
-
-
-
-
-
-
Loss on Sublease of Office
Space, Net of Taxes -
-
-
-
-
-
-
Curtailment of SERP, Net of
Taxes -
-
-
-
-
-
-
Loan Reserves Related to
Impaired Notes Receivable, Net of Taxes -
-
-
-
-
-
-
Resolution of Provisions
for Income Tax Contingencies (1,182)
-
-
-
-
-
-
Income Tax Expense Incurred
Due to Foreign Earnings Repatriation -
-
-
-
-
-
-
Loss(Gain) on Sunburst Note
Transactions, Net of Taxes -
(3,383)
-
-
4,721
-
-
Impairment of and Equity
Losses in Friendly Hotels PLC Investment, Net of Taxes -
-
-
37,166
7,532
-
-
Adjusted Net Income
73,596
$
68,480
$
60,844
$
51,493
$
54,698
$
57,155
$
48,073
$
Weighted Average Shares Outstanding-Diluted
69,000
73,349
80,114
89,144
106,506
111,334
119,096
Diluted Earnings Per Share
1.08
$
0.98
$
0.76
$
0.16
$
0.40
$
0.51
$
0.46
$
Adjustments:
Loss(Gain) on Extinguishment of Debt, Net of Taxes
0.01
-
-
-
-
-
(0.06)
Acceleration of Management Sucession Plan, Net of Taxes
-
-
-
-
-
-
-
Executive Termination Benefits, Net of Taxes
-
-
-
-
-
-
-
Loss on Land Held For Sale
-
-
-
-
-
-
-
Loss on Sublease of Office Space, Net of
Taxes -
-
-
-
-
-
-
Curtailment of SERP, Net of Taxes
-
-
-
-
-
-
-
Loan Reserves Related to Impaired Notes Receivable,
Net of Taxes -
-
-
-
-
-
-
Resolution of Provisions for Income Tax
Contingencies (0.02)
-
-
-
-
-
-
Income Tax Expense Incurred Due to Foreign Earnings
Repatriation -
-
-
-
-
-
-
Loss(Gain) on Sunburst Note Transactions, Net of
Taxes -
(0.05)
-
-
0.04
-
-
Impairment of and Equity Losses in Friendly Hotels
PLC Investment, Net of Taxes -
-
-
0.42
0.07
-
-
Adjusted Diluted Earnings Per Share (EPS)
1.07
$
0.93
$
0.76
$
0.58
$
0.51
$
0.51
$
0.40
$
|