Choice Hotels International Reports Record Revenues, Operating Income And Net Income

ROCKVILLE, Md., Feb. 18, 2016 (hospitalitybusinessnews.com) — Choice Hotels International, Inc. today reported the following highlights for the fourth quarter and full-year 2015:

Fourth Quarter Highlights

  • Diluted earnings per share (“EPS”) from continuing operations for the three months ended December 31, 2015 totaled $0.51, an increase of 19 percent from the same period of 2014.
  • Revenues for the three months ended December 31, 2015 totaled $211.0 million, an increase of 14 percent from the same period of 2014.
  • Earnings before interest, taxes, depreciation and amortization (“EBITDA”) from franchising activities for the three months ended December 31, 2015 totaled $55.7 million, an increase of 6 percent from the same period of 2014.
  • Franchising margins for the three months ended December 31, 2015 were 62.3 percent, an increase of 20 basis points from the same period of 2014.
  • Domestic royalty fees for the three months ended December 31, 2015 totaled $63.1 million, an increase of 6.7 percent from the same period of 2014.
  • Domestic system-wide revenue per available room (“RevPAR”) increased 4.3 percent in the fourth quarter of 2015, as occupancy and average daily rates increased 60 basis points and 3.2 percent, respectively from the same period of 2014.
  • Domestic units as of December 31, 2015 increased 1.1 percent from December 31, 2014.
  • Effective royalty rate for the three months ended December 31, 2015 was 4.37 percent, an increase of 9 basis points from the same period of 2014.
  • Domestic relicensing and contract renewal transactions totaled 104 for the three months ended December 31, 2015, an increase of 12 percent from the same period of 2014.
  • The company’s domestic pipeline of hotels awaiting conversion, under construction or approved for development as of December 31, 2015 increased 19 percent from December 31, 2014.

“We are pleased to report another record year of revenue, operating income and net income performance,” said Stephen P. Joyce, president and chief executive officer, Choice Hotels. “Our performance was driven by continued improvement in our domestic royalty revenues resulting from growth all in 3 critical levers – RevPAR, system-size and effective royalty rate, as well as our franchise development results. Our effective royalty rates for the domestic system increased 9 basis points during the quarter and, excluding the impact of our Comfort rejuvenation strategy, our domestic units under franchise grew 4% from the prior year. As domestic franchise contracts for both new construction and conversion sales continue to strengthen, we are expecting an acceleration of the growth rates for our domestic system size in 2016.  We are optimistic that developers will continue to respond to our strong family of brands and are optimistic that RevPAR performance and growth of our effective royalty rates will continue to be strong in 2016.”

Full-Year Highlights

  • EBITDA from franchising activities in 2015 totaled $255.8 million, an increase of $15.8 million or 7 percent from 2014.
  • Revenues for 2015 totaled $859.9 million, an increase of 13 percent from 2014.
  • Franchising revenues for 2015 totaled $366.7 million, an increase of $21.9 million or 6 percent from 2014.
  • Franchising selling, general and administration (“SG&A”) expenses in 2015 totaled $110.9 million, an increase of 5.8 percent from 2014.
  • Franchising margins for 2015 were 67.3 percent, an increase of 10 basis points from 2014.
  • Diluted EPS from continuing operations in 2015 totaled $2.22, an increase of 7 percent from 2014.
  • Domestic royalty fees in 2015 totaled $281.3 million, an increase of 7 percent from 2014.
  • Domestic system-wide RevPAR increased 6.5 percent in 2015 as occupancy and average daily rates increased 160 basis points and 3.7 percent, respectively, from 2014.
  • The effective royalty rate in 2015 was 4.30 percent, a 2 basis point increase from 2014.
  • Initial and relicensing fees for 2015 totaled $24.7 million, an increase of 27 percent from 2014.
  • New franchise contracts executed in 2015 for domestic hotels, totaled 630, an 11 percent increase from 2014.
  • Domestic relicensing and contract renewal transactions in 2015 totaled 408 contracts, an increase of 21 percent from 2014.
  • During 2015, non-franchising activities, which primarily relate to SkyTouch, and an acquired vacation rental technology business drove $4 million of revenues and a net $19 million operating expense.

Use of Cash Flows

Dividends

During the fourth quarter of 2015, the company’s board of directors announced a 5% increase in the current quarterly dividend rate per common share to $0.205 per share.  During the year ended December 31, 2015, the company paid cash dividends totaling approximately $45 million.

Share Repurchases

The company repurchased 1.3 million shares of common stock under its share repurchase program during 2015, at a total cost of approximately $66 million. The company currently has authorization to purchase up to 1.7 million additional shares under this program.

Hotel Development & Financing

Pursuant to its program to encourage acceleration of the growth of our upscale select-service Cambria hotel & suites brand, the company’s net advances in support of the Cambria brand totaled $61 million during the year ended December 31, 2015.  These advances are primarily in the form of joint venture investments, forgivable key money loans, senior and mezzanine lending and site acquisitions.  At December 31, 2015, the Company had approximately $129 million outstanding pursuant to these financial support activities. With respect to lending and joint venture investments, the company generally expects to recycle these loans and investments within a five year period.

Discontinued Operations

During 2014, the company entered into and completed a plan to sell its three owned hotels operated under the MainStay Suites brand. The company determined that the sale of these hotels met the definition of a discontinued operation since the operations and cash flows of these components have been eliminated from the on-going operations of the company and the company does not have significant continuing involvement in the operations of the hotels after the transaction. As a result, the company’s consolidated statement of income for the three months and year ended December 31, 2014, reflects these three company-owned hotels as discontinued operations.

Summarized financial information related to these discontinued operations is presented in Exhibit 9 of this press release.

Outlook

The company’s consolidated 2016 outlook reflects the following assumptions:

Hotel Franchising

  • EBITDA from franchising activities for full-year 2016 are expected to range between $270 million and $275 million;
  • Net domestic unit growth for 2016 is expected to be between 2% and 3%;
  • RevPAR is expected to increase approximately 2% for first quarter and range between 3.75% and 4.75% for full-year 2016; and
  • The effective royalty rate is expected to increase between 6 and 8 basis points for full-year 2016 as compared to full-year 2015.

Non-Hotel Franchising Activities

  • Net reductions in EBITDA relating to our non-hotel franchising operations, which primarily relate to SkyTouch and vacation rental activities, for full-year 2016 are expected to range between approximately $16 million and $19 million.

Other Items

  • The effective tax rate for continuing operations is expected to be approximately 33.5% for the first quarter and full-year 2016; and
  • All figures assume no further repurchases of common stock under the company’s share repurchase program.

Consolidated Outlook

The company’s first quarter 2016 diluted EPS is expected to be at least $0.38. The company expects full-year 2016 diluted EPS to range between $2.30 and $2.36 and full year 2016 EBITDA to range between $252 million and $257 million. The EPS and consolidated EBITDA estimates assume that we incur net reductions in EBITDA related to non-hotel franchising activities at the midpoint of the range for these investments.

 

Choice Hotels International, Inc. Exhibit 1
Consolidated Statements of Income
(Unaudited)
Three Months Ended December 31, Year Ended December 31,
Variance Variance
2015 2014 $ % 2015 2014 $ %
(In thousands, except per share amounts)
REVENUES:
Royalty fees $                 67,965 $              65,237 $     2,728 4% $              301,508 $               287,538 $     13,970 5%
Initial franchise and relicensing fees 6,977 6,720 257 4% 24,680 19,481 5,199 27%
Procurement services 7,404 5,526 1,878 34% 27,071 23,819 3,252 14%
Marketing and reservation 122,465 103,594 18,871 18% 488,763 412,619 76,144 18%
Other 6,140 4,325 1,815 42% 17,856 14,513 3,343 23%
      Total revenues 210,951 185,402 25,549 14% 859,878 757,970 101,908 13%
OPERATING EXPENSES:
Selling, general and administrative 38,542 33,089 5,453 16% 134,254 121,418 12,836 11%
Depreciation and amortization 2,749 2,462 287 12% 11,542 9,365 2,177 23%
Marketing and reservation 122,465 103,594 18,871 18% 488,763 412,619 76,144 18%
Total operating expenses 163,756 139,145 24,611 18% 634,559 543,402 91,157 17%
Operating income 47,195 46,257 938 2% 225,319 214,568 10,751 5%
OTHER INCOME AND EXPENSES, NET:
Interest expense 10,776 10,110 666 7% 42,833 41,486 1,347 3%
Interest income (598) (556) (42) 8% (1,580) (1,761) 181 (10%)
Other (gains) and losses (581) 585 (1,166) (199%) (820) 427 (1,247) (292%)
Equity in net (income) loss of affiliates (206) 80 (286) (358%) 901 658 243 37%
Total other income and expenses, net 9,391 10,219 (828) (8%) 41,334 40,810 524 1%
Income from continuing operations before income taxes 37,804 36,038 1,766 5% 183,985 173,758 10,227 6%
Income taxes 8,601 10,729 (2,128) (20%) 55,956 52,285 3,671 7%
Income from continuing operations, net of income taxes 29,203 25,309 3,894 15% 128,029 121,473 6,556 5%
Income from discontinued operations, net of income taxes (24) 24 (100%) 1,687 (1,687) (100%)
Net income $                 29,203 $              25,285 $     3,918 15% $              128,029 $               123,160 $       4,869 4%
Basic earnings per share
Continuing operations $                     0.52 $                  0.44 $      0.08 18% $                   2.24 $                    2.08 $        0.16 8%
Discontinued operations NM 0.03 (0.03) (100%)
$                     0.52 $                  0.44 $      0.08 18% $                   2.24 $                    2.11 $        0.13 6%
Diluted earnings per share
Continuing operations $                     0.51 $                  0.43 $      0.08 19% $                   2.22 $                    2.07 $        0.15 7%
Discontinued operations NM 0.03 (0.03) (100%)
$                     0.51 $                  0.43 $      0.08 19% $                   2.22 $                    2.10 $        0.12 6%

 

 

Choice Hotels International, Inc. Exhibit 2
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)  December 31,   December 31,
2015 2014(1)
(Unaudited)
ASSETS
Cash and cash equivalents $           193,441 $         214,879
Accounts receivable, net 89,352 91,681
Other current assets 28,160 18,869
Total current assets 310,953 325,429
Fixed assets and intangibles, net 179,433 152,034
Notes receivable, net of allowances 82,572 40,441
Investments, employee benefit plans, at fair value 17,674 17,539
Other assets 126,378 102,474
Total assets $           717,010 $         637,917
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Accounts payable $              64,431 $            57,124
Accrued expenses and other current liabilities 70,807 64,243
Deferred revenue 71,587 66,382
Current portion of long-term debt 1,191 12,349
Total current liabilities 208,016 200,098
Long-term debt 812,945 772,729
Deferred compensation & retirement plan obligations 22,859 23,987
Other liabilities 69,089 69,904
Total liabilities 1,112,909 1,066,718
Total shareholders’ deficit (395,899) (428,801)
Total liabilities and shareholders’ deficit $           717,010 $         637,917
(1) The consolidated balance sheet has been recast to reflect the Company’s adoption of ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs” and ASU 2015-17 “Balance Sheet Classification of Deferred Taxes”. As a result, debt issuance costs have been recast from other assets to long-term debt and current deferred taxes were recast as long-term assets

 

 

Choice Hotels International, Inc. Exhibit 3
Consolidated Statements of Cash Flows
(Unaudited)
(In thousands) Year Ended December 31,
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $                  128,029 $            123,160
Adjustments to reconcile net income to net cash provided
 by operating activities:
  Depreciation and amortization 11,542 9,365
  Gain on sale of assets (1,521) (2,809)
  Provision for bad debts, net 1,704 2,775
  Non-cash stock compensation and other charges 11,805 9,706
  Non-cash interest and other (income) loss 3,229 3,174
  Deferred income taxes 615 (22,899)
  Equity (earnings) losses from unconsolidated joint ventures, net of distributions received 3,279 2,200
Changes in assets and liabilities, net of acquisition:
  Receivables 401 (14,250)
  Advances to/from marketing and reservation activities, net 11,074 70,179
  Forgivable notes receivable, net (23,066) (12,914)
  Accounts payable 6,493 9,636
  Accrued expenses and other current liabilities 5,166 6,678
  Income taxes payable/receivable (4,399) (3,582)
  Deferred revenue 5,251 5,297
  Other assets (5,792) (1,250)
  Other liabilities 6,062 (575)
 NET CASH PROVIDED BY OPERATING ACTIVITIES  159,872 183,891
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in property and equipment (27,765) (20,946)
Proceeds from sales of assets 6,347 15,612
Acquisition, net of cash acquired (13,269)
Issuance of mezzanine and other notes receivable (36,884) (3,340)
Collections of mezzanine and other notes receivable 4,849 11,289
Contributions to equity method investments (23,737) (17,789)
Distributions from equity method investments 518
Purchases of investments, employee benefit plans (3,220) (2,794)
Proceeds from sales of investments, employee benefit plans 3,170 964
Other items, net (9,819) (642)
 NET CASH USED BY INVESTING ACTIVITIES  (99,810) (17,646)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings pursuant to revolving credit facilities 158,867
Principal payments on long-term debt (130,501) (10,108)
Proceeds from the issuance of long-term debt 176 250
Debt issuance costs (2,169)
Purchase of treasury stock (72,873) (77,972)
Dividends paid (45,214) (43,529)
Excess tax benefits from stock-based compensation 5,207 3,721
Proceeds from exercise of stock options 7,056 10,098
 NET CASH USED BY FINANCING ACTIVITIES (79,451) (117,540)
Net change in cash and cash equivalents (19,389) 48,705
Effect of foreign exchange rate changes on cash and cash equivalents (2,049) (1,621)
Cash and cash equivalents at beginning of period 214,879 167,795
CASH AND CASH EQUIVALENTS AT END OF PERIOD $                  193,441 $            214,879

 

 

CHOICE HOTELS INTERNATIONAL, INC. Exhibit 4
SUPPLEMENTAL OPERATING INFORMATION 
DOMESTIC HOTEL SYSTEM
(UNAUDITED)
For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 Change
Average Daily Average Daily Average Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
Comfort Inn $             89.68 65.0% $          58.25 $             86.08 63.3% $         54.50 4.2% 170 bps 6.9%
Comfort Suites 93.89 68.3% 64.16 90.24 66.5% 60.01 4.0% 180 bps 6.9%
Sleep 80.41 63.9% 51.41 77.13 62.5% 48.24 4.3% 140 bps 6.6%
Quality 75.06 58.2% 43.69 71.98 56.1% 40.39 4.3% 210 bps 8.2%
Clarion 79.85 57.2% 45.63 77.65 54.5% 42.34 2.8% 270 bps 7.8%
Econo Lodge 59.61 53.5% 31.90 57.85 51.6% 29.86 3.0% 190 bps 6.8%
Rodeway 59.75 56.3% 33.64 56.68 55.1% 31.25 5.4% 120 bps 7.6%
MainStay 77.02 67.1% 51.71 74.82 71.4% 53.40 2.9% (430) bps (3.2%)
Suburban 47.61 75.5% 35.95 45.25 71.8% 32.51 5.2% 370 bps 10.6%
Ascend Hotel Collection 127.27 58.5% 74.47 121.49 60.3% 73.20 4.8% (180) bps 1.7%
Total  $             79.86 61.1% $          48.78 $             77.03 59.5% $         45.80 3.7% 160 bps 6.5%
For the Three Months Ended December 31, 2015 For the Three Months Ended December 31, 2014 Change
Average Daily Average Daily Average Daily
Rate Occupancy RevPAR Rate Occupancy RevPAR Rate Occupancy RevPAR
Comfort Inn $             86.31 59.4% $          51.25 $             83.22 58.4% $         48.59 3.7% 100 bps 5.5%
Comfort Suites 90.85 63.7% 57.90 87.51 62.4% 54.65 3.8% 130 bps 5.9%
Sleep 77.35 58.7% 45.41 75.09 59.0% 44.30 3.0% (30) bps 2.5%
Quality 71.82 52.5% 37.68 68.96 51.3% 35.37 4.1% 120 bps 6.5%
Clarion 76.13 51.8% 39.43 76.21 50.3% 38.29 (0.1%) 150 bps 3.0%
Econo Lodge 56.79 48.8% 27.72 55.18 47.7% 26.33 2.9% 110 bps 5.3%
Rodeway 57.00 49.9% 28.47 54.01 50.9% 27.47 5.5% (100) bps 3.6%
MainStay 73.73 60.1% 44.30 72.56 67.0% 48.59 1.6% (690) bps (8.8%)
Suburban 47.15 71.1% 33.51 45.11 67.5% 30.45 4.5% 360 bps 10.0%
Ascend Hotel Collection 126.92 54.4% 69.09 124.75 62.2% 77.56 1.7% (780) bps (10.9%)
Total  $             76.81 55.7% $          42.76 $             74.42 55.1% $         41.00 3.2% 60 bps 4.3%
For the Three Months Ended For the Year Ended
12/31/2015 12/31/2014 12/31/2015 12/31/2014
System-wide effective royalty rate 4.37% 4.28% 4.30% 4.28%

 

 

CHOICE HOTELS INTERNATIONAL, INC. Exhibit 5
SUPPLEMENTAL HOTEL AND ROOM SUPPLY DATA
(UNAUDITED)
December 31, 2015 December 31, 2014 Variance
Hotels Rooms Hotels Rooms Hotels Rooms % %
Comfort Inn 1,156 89,545 1,240 95,862 (84) (6,317) (6.8%) (6.6%)
Comfort Suites 569 43,949 577 44,632 (8) (683) (1.4%) (1.5%)
Sleep 377 27,047 371 26,811 6 236 1.6% 0.9%
Quality 1,379 110,116 1,284 104,454 95 5,662 7.4% 5.4%
Clarion 175 24,449 178 25,049 (3) (600) (1.7%) (2.4%)
Econo Lodge 856 52,978 856 52,878 100 0.0% 0.2%
Rodeway 513 28,880 474 26,172 39 2,708 8.2% 10.3%
MainStay 52 3,846 45 3,568 7 278 15.6% 7.8%
Suburban 62 6,994 65 7,198 (3) (204) (4.6%) (2.8%)
Ascend Hotel Collection 112 9,455 109 9,395 3 60 2.8% 0.6%
Cambria hotel & suites 25 3,113 22 2,642 3 471 13.6% 17.8%
Domestic Franchises 5,276 400,372 5,221 398,661 55 1,711 1.1% 0.4%
International Franchises 1,147 107,111 1,158 106,617 (11) 494 (0.9%) 0.5%
Total Franchises 6,423 507,483 6,379 505,278 44 2,205 0.7% 0.4%

 

 

Exhibit 6
CHOICE HOTELS INTERNATIONAL, INC.
SUPPLEMENTAL INFORMATION BY BRAND
DEVELOPMENT RESULTS — DOMESTIC NEW HOTEL CONTRACTS
(UNAUDITED)
For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 % Change
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
Comfort Inn 37 39 76 31 24 55 19% 63% 38%
Comfort Suites 45 6 51 39 1 40 15% 500% 28%
Sleep 34 34 36 2 38 (6%) (100%) (11%)
Quality 3 193 196 3 166 169 0% 16% 16%
Clarion 12 12 1 28 29 (100%) (57%) (59%)
Econo Lodge 60 60 3 79 82 (100%) (24%) (27%)
Rodeway 104 104 3 76 79 (100%) 37% 32%
MainStay 27 27 20 3 23 35% (100%) 17%
Suburban 1 6 7 4 5 9 (75%) 20% (22%)
Ascend Hotel Collection 5 32 37 11 23 34 (55%) 39% 9%
Cambria hotel & suites 21 5 26 8 8 163% NM 225%
Total Domestic System 173 457 630 159 407 566 9% 12% 11%
For the Three Months Ended December 31, 2015 For the Three Months Ended December 31, 2014 % Change
New New New
Construction Conversion Total Construction Conversion Total Construction Conversion Total
Comfort Inn 20 11 31 15 13 28 33% (15%) 11%
Comfort Suites 27 3 30 28 1 29 (4%) 200% 3%
Sleep 15 15 15 1 16 0% (100%) (6%)
Quality 79 79 84 84 NM (6%) (6%)
Clarion 5 5 13 13 NM (62%) (62%)
Econo Lodge 21 21 2 33 35 (100%) (36%) (40%)
Rodeway 47 47 28 28 NM 68% 68%
MainStay 11 11 10 2 12 10% (100%) (8%)
Suburban 2 2 2 2 4 (100%) 0% (50%)
Ascend Hotel Collection 2 10 12 5 12 17 (60%) (17%) (29%)
Cambria hotel & suites 7 3 10 3 3 133% NM 233%
Total Domestic System 82 181 263 80 189 269 3% (4%) (2%)

 

 

Exhibit 7
CHOICE HOTELS INTERNATIONAL, INC.
DOMESTIC PIPELINE OF HOTELS UNDER CONSTRUCTION, AWAITING CONVERSION OR APPROVED FOR DEVELOPMENT
(UNAUDITED)
A hotel in the domestic pipeline does not always result in an open and operating hotel due to various factors.
Variance
December 31, 2015

Units

December 31, 2014

Units

Conversion New Construction Total
Conversion New Construction Total Conversion New Construction Total Units % Units % Units %
Comfort Inn 38 83 121 36 64 100 2 6% 19 30% 21 21%
Comfort Suites 3 95 98 75 75 3 NM 20 27% 23 31%
Sleep Inn 81 81 2 72 74 (2) (100%) 9 13% 7 9%
Quality 53 5 58 52 5 57 1 2% 0% 1 2%
Clarion 7 2 9 12 2 14 (5) (42%) 0% (5) (36%)
Econo Lodge 23 4 27 32 5 37 (9) (28%) (1) (20%) (10) (27%)
Rodeway 47 2 49 31 4 35 16 52% (2) (50%) 14 40%
MainStay 60 60 1 46 47 (1) (100%) 14 30% 13 28%
Suburban 5 8 13 4 12 16 1 25% (4) (33%) (3) (19%)
Ascend Hotel Collection 28 19 47 14 20 34 14 100% (1) (5%) 13 38%
Cambria hotel & suites 5 38 43 21 21 5 NM 17 81% 22 105%
209 397 606 184 326 510 25 14% 71 22% 96 19%

 

 

CHOICE HOTELS INTERNATIONAL, INC. Exhibit 8
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION
(UNAUDITED)
CALCULATION OF FRANCHISING REVENUES AND FRANCHISING MARGINS
(dollar amounts in thousands) Three Months Ended December 31,  Year Ended December 31, 
2015 2014 2015 2014
Franchising Revenues:
Total Revenues $              210,951 $               185,402 $               859,878 $              757,970
Adjustments:
     Marketing and reservation revenues (122,465) (103,594) (488,763) (412,619)
     Non-franchising activities (1,943) (387) (4,416) (600)
Franchising Revenues $                86,543 $                 81,421 $               366,699 $              344,751
Franchising Margins:
Operating Margin:
Total Revenues $              210,951 $               185,402 $               859,878 $              757,970
Operating Income $                47,195 $                 46,257 $               225,319 $              214,568
     Operating Margin 22.4% 24.9% 26.2% 28.3%
Franchising Margin:
Franchising Revenues $                86,543 $                 81,421 $               366,699 $              344,751
Operating Income $                47,195 $                 46,257 $               225,319 $              214,568
Non-franchising activities operating loss 6,722 4,271 21,529 17,065
$                53,917 $                 50,528 $               246,848 $              231,633
     Franchising Margins 62.3% 62.1% 67.3% 67.2%
CALCULATION OF FRANCHISING SELLING, GENERAL AND ADMINISTRATION EXPENSES
(dollar amounts in thousands) Three Months Ended December 31,  Year Ended December 31, 
2015 2014 2015 2014
Total Selling, General and Administrative Expenses $                38,542 $                 33,089 $               134,254 $              121,418
Non-Franchising Activities (7,746) (4,336) (23,376) (16,658)
Franchising Selling, General and Administration Expenses $                30,796 $                 28,753 $               110,878 $              104,760
CALCULATION OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (“EBITDA”)
(dollar amounts in thousands)
Three Months Ended December 31,  Year Ended December 31, 
2015 2014 2015 2014
Income from continuing operations, net of income taxes $                29,203 $                 25,309 $               128,029 $              121,473
Income taxes 8,601 10,729 55,956 52,285
Interest expense 10,776 10,110 42,833 41,486
Interest income (598) (556) (1,580) (1,761)
Other (gains) and losses (581) 585 (820) 427
Equity in net (income) loss of affiliates (206) 80 901 658
Depreciation and amortization 2,749 2,462 11,542 9,365
EBITDA $                49,944 $                 48,719 $               236,861 $              223,933
Franchising $                55,747 $                 52,668 $               255,821 $              239,991
Non-Franchising activities (5,803) (3,949) (18,960) (16,058)
$                49,944 $                 48,719 $               236,861 $              223,933

 

 

CHOICE HOTELS INTERNATIONAL, INC. Exhibit 9
DISCONTINUED OPERATIONS
(UNAUDITED)
Three Months Ended December 31, Year Ended December 31, 
(In thousands) 2015 2014 2015 2014
REVENUES:
Hotel operations $                       – $                          – $                        – $                  801
      Total revenues 801
OPERATING EXPENSES:
Hotel operations 43 927
Total operating expenses 43 927
Operating income (loss) (43) (126)
Gain (loss) on disposal of discontinued operations 4 2,807
Income (loss) from discontinued operations before income taxes (39) 2,681
Income tax  (benefit) (15) 994
Income (loss) from discontinued operations $                       – $                      (24) $                        – $               1,687

 

 

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