Choice Hotles Reports Strong Second Quarter 1998 Results.SILVER SPRING, Md.--(BUSINESS WIRE)--Jan. 8, 1998-- $0.21 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Reflects 23 Percent Year-Over-Year Increase in Net Income First Full Quarter To Report As Pure Franchising Company Choice Hotels International Inc. (NYSE NYSE See: New York Stock Exchange : CHH CHH Cartilage Hair Hypoplasia CHH Crustacean Hyperglycemic Hormone CHH Carter Holt Harvey Limited (Australia & New Zealand) CHH Chuan Hup Holdings Limited (Singapore) CHH Certified Hardware Hosineer ) Thursday Thursday: see week. reported a 23 percent increase in per share earnings for the quarter ending Nov. 30, 1997. The company said earnings were driven by a 14 percent increase in franchise royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. fees. The global hotel franchising company said net income rose to $12.3 million, or $0.21 per share, for the second fiscal 1998 quarter ended Nov. 30, 1997, up 23 percent compared with the same period in 1997 of $10.0 million, or $0.16 per share. This is the first quarter Choice is reporting results as a pure franchising company since it separated in October October: see month. , 1997 from its real estate operations, now known as Sunburst Hospitality Corp. (NYSE:SNB SNB Snowboard SNB Service New Brunswick SNB Sentinel Node Biopsy SNB Shake and Bake (algorithm) SNB special negotiating body SNB Singapore Nursing Board SNB Strictly Non-Blocking SNB Strengths/Needs-Based ). This quarter also marks the last full quarter Choice will report on a fiscal year ending May 31st. Starting Jan. 1, 1998, the company will report on a calendar year. For the second quarter of fiscal year 1998, Choice generated $79.6 million in total revenues, and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $23.6 million, as compared to $69.4 million in revenues, and $19.9 million in operating income for the same fiscal 1997 period. RevPar (revenue per available room) rose from $35.98 in the year-ago quarter to $36.99 for the quarter just ended. This represents a year-over-year RevPar increase of $1.01, or 2.8 percent. The company's net franchising margins for the second quarter of fiscal year 1998 improved to 65 percent from 59 percent for the same period a year ago. Said William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack R. Floyd Floyd is a variant spelling of the Welsh name Lloyd, which means grey, and may refer to: Places
A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . "Our single franchising focus and a continuing strong performance will fuel the company's strategic expansion in key growth markets in the U.S. and abroad. The new Choice is better positioned than ever to exploit changing industry dynamics and increase returns to investors over time." Franchise royalty fees rose 13 percent to $62.3 million from $55.1 million for the first half of fiscal 1998. Net income for the first half of fiscal 1998 was $24.4 million, or $0.41 per share, compared with net income of $21.0 million, or $0.33 per share, in the comparable 1997 period. RevPar (revenue per available room) rose from $36.94 in the first half of fiscal 1997 to $37.83 for the first half of this fiscal year. This represents a year-over-year RevPar increase of $0.89, or 2.4 percent. For the period ended Nov. 30, 1997, the total number of Choice hotels on-line grew 8.3 percent from 3,225 in the second fiscal quarter 1997 to 3,494 in the quarter just ended. Total room growth increased 7.9 percent from 272,372 in the year-ago quarter to 293,772 in the quarter just ended. The company added 36 opened hotels to its system in the second fiscal quarter of this year. Average daily charge rates increased from $52.51 in the second fiscal 1997 quarter to $55.17 in the quarter just ended, representing a year-over-year increase of 5.1 percent across Choice brands. Choice Hotels International is the second-largest hotel franchisor in the world with 3,494 hotels open and representing 293,772 rooms in 32 countries under the brand names Quality, Comfort, Clarion A family of application development systems for Windows from SoftVelocity, Inc., Pompano Beach, FL (www.softvelocity.com). Clarion provides a comprehensive set of tools for development, including a screen builder, 4GL and application generator. , Sleep Inn, Rodeway Inn Rodeway Inn is an upper-priced economy chain of motels in the United States and Canada. Rodeway Inn is a brand of the Choice Hotels group. There are over 150 locations in North America. , Econo Lodge Econo Lodge is an economy motel chain based in the United States. Econo Lodge is the second largest brand in the Choice Hotels system. It is one of the best known names of its category and provides affordable rooms to budget travelers. , and Mainstay Suites Mainstay Suites is a brand of mid-priced extended stay hotels franchised by Choice Hotels International. Mainstay Suites hotels provide comfortable and affordable accommodations to extended stay travelers as well as provide many amenities to its guests. . This news release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Investors are cautioned that actual results could materially differ and are referred to documents filed by the company with the Securities and Exchange Commission on investment considerations. -0-
Choice Hotels International Inc.
Consolidated Statements of Income
(Unaudited)
For the Three Months Ended For the Six Months Ended
November 30, November 30,
1997 1996 1997 1996
============================================
REVENUES
Royalty fees
31,224,143 27,380,539 62,254,153 55,099,103
Marketing and
reservation fees
32,635,366 26,002,222 63,910,366 55,117,222
Product Sales
5,154,647 4,891,236 10,997,647 12,984,236
Initial franchise
fees and
relicensing fees
3,944,800 4,002,932 6,841,800 7,881,932
Other, including
partner services
revenue
1,721,800 1,957,467 2,428,790 3,382,903
European hotel
operations
4,908,000 5,151,000 9,230,000 9,687,000
Total revenue ----------------------- ------------------------
79,588,756 69,385,396 155,662,756 144,152,396
OPERATING EXPENSES
Franchise marketing
and reservation
31,855,750 24,590,699 62,107,750 53,382,699
Hotel operations
4,104,000 4,363,000 7,935,000 8,612,000
Selling, general
and administrative
12,965,332 13,539,641 23,459,332 24,100,641
Product services cost
of sales
5,084,167 4,362,049 10,547,167 11,801,049
Depreciation and
amortization
2,007,337 2,667,963 5,086,337 5,219,963
----------------------- -------------------------
Total operating
costs 56,016,586 49,523,352 109,135,586 103,116,352
Income before
interest expense
and income taxes
23,572,170 19,862,044 46,527,170 41,036,044
Income expense,
net
2,778,745 2,827,890 5,094,745 5,314,890
----------------------- -------------------------
Income before
income taxes
20,793,425 17,034,154 41,432,425 35,721,154
Income taxes
8,541,653 7,012,961 17,057,729 14,706,399
----------------------- -------------------------
Net income
12,251,772 10,021,193 24,374,696 21,014,755
======================= =========================
Earnings per
share
$0.21 $0.16 $0.41 $0.33
======================= =========================
Weighted average
shares outstanding
59,763,436 63,050,000 59,961,099 63,021,000
======================= =========================
-0-
Choice Hotels International Inc. Margin Analysis
(Unaudited, in Thousands)
For the Three Months Ended For the Six Months Ended
November 30, November 30,
1997 1996 1997 1996
===================================================
Net franchising margins:
Franchise revenues -
Royalty fees 31,224 27,381 62,254 55,099
Initial franchise
and relicensing
fees 3,945 4,003 6,842 7,882
Other, including
partner services
revenue 1,722 1,957 2,429 3,383
============================================
Total 36,891 33,341 71,525 66,364
Franchise selling,
general and
administrative
expenses 12,965 13,540 23,459 24,101
Net franchising
margin 23,926 19,801 48,066 42,263
Net franchising
margin
percentages 65% 59% 67% 64%
-0- The company analyzes the profitability of its business based on net franchising margins as defined above. Marketing and reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. fees and product sales are excluded as these represent pass-throughs and are not intended to be profitable components of the company's business. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. hotel operations are excluded since the company has reached a definitive agreement to sell its owned-hotel operations to Friendly Hotels PLC in January January: see month. . CONTACT: Choice Hotels International A.B. Albritton, Vice President Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. 301/979-5116 or Choice Hotels International Joe Squeri, Vice President, Finance 301/979-5006 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion