|
CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| |
Years Ended December 31, |
 |
|
| |
2003 |
|
2002 |
|
2001 |
|
|
|
|
| |
(In thousands, except |
| |
per share amounts) |
| REVENUES: |
| Royalty fees |
$ |
151,326 |
|
$ |
142,943 |
|
$ |
140,185 |
|
| Initial franchise and relicensing fees |
|
16,799 |
|
|
12,881 |
|
|
12,887 |
|
| Partner services |
|
13,227 |
|
|
11,860 |
|
|
12,042 |
|
| Marketing and reservation |
|
195,420 |
|
|
190,145 |
|
|
168,170 |
|
| Hotel operations |
|
3,565 |
|
|
3,331 |
|
|
3,215 |
|
| Other |
|
5,767 |
|
|
4,402 |
|
|
4,929 |
|
|
|
|
|
| Total revenues |
|
386,104 |
|
|
365,562 |
|
|
341,428 |
|
| OPERATING EXPENSES: |
| Selling, general and administrative |
|
62,860 |
|
|
56,520 |
|
|
62,015 |
|
| Impairment of Friendly investment |
|
— |
|
|
— |
|
|
22,713 |
|
| Depreciation and amortization |
|
11,225 |
|
|
11,251 |
|
|
12,452 |
|
| Marketing and reservation |
|
195,420 |
|
|
190,145 |
|
|
168,170 |
|
| Hotel operations |
|
2,616 |
|
|
2,946 |
|
|
2,501 |
|
|
|
|
|
| Total operating expenses |
|
272,121 |
|
|
260,862 |
|
|
267,851 |
|
|
|
|
|
| Operating income |
|
113,983 |
|
|
104,700 |
|
|
73,577 |
|
|
|
|
|
| OTHER INCOME AND EXPENSES: |
| Interest expense |
|
11,597 |
|
|
13,136 |
|
|
15,445 |
|
| Interest and other investment income |
|
(6,185 |
) |
|
(4,549 |
) |
|
(4,329 |
) |
| Gain on prepayment of note receivable from Sunburst |
|
(3,383 |
) |
|
— |
|
|
— |
|
| Equity in net (income) losses of affiliates |
|
(582 |
) |
|
71 |
|
|
16,436 |
|
| Other |
|
129 |
|
|
224 |
|
|
608 |
|
|
|
|
|
| Total other income and expenses |
|
1,576 |
|
|
8,882 |
|
|
28,160 |
|
|
|
|
|
| Income before income taxes |
|
112,407 |
|
|
95,818 |
|
|
45,417 |
|
| Income taxes |
|
40,544 |
|
|
34,974 |
|
|
31,090 |
|
|
|
|
|
| Net income |
$ |
71,863 |
|
$ |
60,844 |
|
$ |
14,327 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding-basic |
|
35,699 |
|
|
39,333 |
|
|
44,174 |
|
|
|
|
|
| Weighted average shares outstanding-diluted |
|
36,674 |
|
|
40,057 |
|
|
44,572 |
|
|
|
|
|
| Basic earnings per share |
$ |
2.01 |
|
$ |
1.55 |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share |
$ |
1.96 |
|
$ |
1.52 |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these consolidated financial statements.
|
