Choice Reports Q3 Earnings

Choice Hotels International, Inc., today reported the following highlights for third quarter 2011:-* Diluted earnings per share ("EPS") for third quarter 2011 were $0.71 compared to $0.68 for the same period of the prior year. -*Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") were $64.9 million for the three months ended September 30, 2011, compared to $57.3 million for the same period of 2010. Operating income increased 14% from $54.9 million for the three months ended September 30, 2010 to $62.4 million for the same period of the current year. -* Franchising revenues increased 8.5% from $79.9 million for the three months ended September 30, 2010 to $86.7 million for the same period of 2011. Total revenues for the three months ended September 30, 2011 increased 5% to $192.3 million compared to the same period of 2010. -* Excluding special items, adjusted selling, general and administrative ("SG&A") expenses declined 3% from $22.9 million for third quarter of 2010 to $22.1 million for the same period of the current year. SG&A expenses were $22.6 million for the three months ended September 30, 2011, compared to $23.2 million for the same period of 2010. -* Changes in the fair value of investments held in certain of the company's retirement plans are accounted for as investment gains and losses and are presented under the caption Other (gains) and losses with a corresponding adjustment to compensation expense in SG&A. During the three months ended September 30, 2011, the company recorded $1.2 million in investment losses related to these investments. As a result of the decline in the value of these investments, the deferred compensation liability to the participants also declined resulting in a $1.3 million reduction of compensation expense reflected in SG&A expenses. During the three months ended September 30, 2010, investment gains totaling $0.7 million were recorded in Other (gains) and losses which resulted in an increase in SG&A expense of $0.8 million to reflect the increase in the deferred compensation liability to participants. -* The effective income tax rate for the three months ended September 30, 2011 was 25.7% compared to 26.4% for the same period of the prior year. Excluding discrete items totaling $4.3 million and $4.0 million recorded during the three months ended September 30, 2011 and 2010, the company's effective income tax rates were approximately 33.2% and 33.6%, respectively. -* Worldwide unit growth increased 0.8 percent from September 30, 2010 comprised of domestic and international unit growth of 0.4 percent and 2.5 percent, respectively. -* Domestic system-wide revenue per available room ("RevPAR") increased 5.4% for the third quarter of 2011 compared to the same period of 2010. -* The effective royalty rate increased 2 basis points to 4.29% for the three months ended September 30, 2011 compared to 4.27% for the same period of the prior year. -* The company executed 79 new domestic hotel franchise contracts for the three months ended September 30, 2011, compared to the 79 contracts executed in the same period of the prior year. -* The number of domestic hotels under construction, awaiting conversion or approved for development declined 21% from September 30, 2010 to 430 hotels representing 35,114 rooms; the worldwide pipeline declined 18% from September 30, 2010 to 524 hotels representing 43,829 rooms.-* Diluted earnings per share ("EPS") for third quarter 2011 were $0.71 compared to $0.68 for the same period of the prior year. -*Excluding special items, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") were $64.9 million for the three months ended September 30, 2011, compared to $57.3 million for the same period of 2010. Operating income increased 14% from $54.9 million for the three months ended September 30, 2010 to $62.4 million for the same period of the current year. -* Franchising revenues increased 8.5% from $79.9 million for the three months ended September 30, 2010 to $86.7 million for the same period of 2011. Total revenues for the three months ended September 30, 2011 increased 5% to $192.3 million compared to the same period of 2010. -* Excluding special items, adjusted selling, general and administrative ("SG&A") expenses declined 3% from $22.9 million for third quarter of 2010 to $22.1 million for the same period of the current year. SG&A expenses were $22.6 million for the three months ended September 30, 2011, compared to $23.2 million for the same period of 2010. -* Changes in the fair value of investments held in certain of the company's retirement plans are accounted for as investment gains and losses and are presented under the caption Other (gains) and losses with a corresponding adjustment to compensation expense in SG&A. During the three months ended September 30, 2011, the company recorded $1.2 million in investment losses related to these investments. As a result of the decline in the value of these investments, the deferred compensation liability to the participants also declined resulting in a $1.3 million reduction of compensation expense reflected in SG&A expenses. During the three months ended September 30, 2010, investment gains totaling $0.7 million were recorded in Other (gains) and losses which resulted in an increase in SG&A expense of $0.8 million to reflect the increase in the deferred compensation liability to participants. -* The effective income tax rate for the three months ended September 30, 2011 was 25.7% compared to 26.4% for the same period of the prior year. Excluding discrete items totaling $4.3 million and $4.0 million recorded during the three months ended September 30, 2011 and 2010, the company's effective income tax rates were approximately 33.2% and 33.6%, respectively. -* Worldwide unit growth increased 0.8 percent from September 30, 2010 comprised of domestic and international unit growth of 0.4 percent and 2.5 percent, respectively. -* Domestic system-wide revenue per available room ("RevPAR") increased 5.4% for the third quarter of 2011 compared to the same period of 2010. -* The effective royalty rate increased 2 basis points to 4.29% for the three months ended September 30, 2011 compared to 4.27% for the same period of the prior year. -* The company executed 79 new domestic hotel franchise contracts for the three months ended September 30, 2011, compared to the 79 contracts executed in the same period of the prior year. -* The number of domestic hotels under construction, awaiting conversion or approved for development declined 21% from September 30, 2010 to 430 hotels representing 35,114 rooms; the worldwide pipeline declined 18% from September 30, 2010 to 524 hotels representing 43,829 rooms.