-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NUb6q80ynmsGxu1162nJvAqSek4nFqZcMO+bxU5sgchKXuJnsVUvZHX1m4hGSpDb uxhOZbhOdKfagcPlNlgjFA== 0000928385-97-001255.txt : 19970811 0000928385-97-001255.hdr.sgml : 19970811 ACCESSION NUMBER: 0000928385-97-001255 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970808 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970808 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHOICE HOTELS INTERNATIONAL INC CENTRAL INDEX KEY: 0001018146 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 521985619 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11915 FILM NUMBER: 97654766 BUSINESS ADDRESS: STREET 1: 10750 COLUMBIA PIKE CITY: SILVER SPRING STATE: MD ZIP: 20901 BUSINESS PHONE: 3015935600 FORMER COMPANY: FORMER CONFORMED NAME: CHOICE HOTELS HOLDINGS INC DATE OF NAME CHANGE: 19960705 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): August 8, 1997 -------------- Choice Hotels International, Inc. -------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 52-1985619 - ---------------------------- -------------------- (State or Other Jurisdiction (IRS Employer of Incorporation) Identification No.) 10750 Columbia Pike Silver Spring, Maryland 20901 ---------------------------------------- (Address of Principal Executive Offices) (301) 979-5000 ------------------------------------------------------- (Registrant's telephone number, including area code) ITEM 5. Other Events ------------ Choice Hotels International, Inc. ("Choice" and, together with its subsidiaries, the "Company") deems the information attached hereto as Exhibit 99.1, and incorporated herein by reference, to be of importance to its security holders, as it provides supplemental information relating to the reclassification of revenues and operating expenses of the Company for the fiscal years ended May 31, 1997 and 1996 and for the quarterly periods comprising such fiscal years. This reclassification does not require any amendments to the Company's reports filed under the Securities Exchange Act of 1934, as amended. ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits - ------- ------------------------------------------------------------------ (c) Exhibits -------- 99.1 Choice Hotels International, Inc. Comparative Consolidated Statements of Income. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Choice Hotels International, Inc. By: /s/ James A. MacCutcheon ------------------------- James A. MacCutcheon Executive Vice President, Chief Financial Officer and Treasurer Date: August 8, 1997 3
Choice Hotels International, Inc. Comparative Consolidated Statements of Income Three Months Ended Three Months Ended August 31, August 31, November 30, November 30, (In thousands) 1996 1995 1996 1995 -------- -------- -------- --------- Revenues Royalties, initial fees and other $33,774 $29,738 $32,597 $28,900 Product sales 7,800 4,500 4,652 5,766 Marketing and reservations 27,813 26,294 26,905 24,897 Hotel operations 49,652 39,093 44,950 36,591 -------- -------- -------- --------- Total revenues 119,039 99,625 109,104 96,154 -------- -------- -------- --------- Operating Expenses Franchise marketing and reservations 26,845 24,348 25,268 23,877 Hotel operations 32,359 27,253 31,387 27,501 Franchise selling, general and administrative 12,901 12,534 14,830 11,698 Hotel selling, general and administrative 792 679 1,354 796 Product services cost of sales 7,439 4,284 4,362 5,620 Depreciation and amortization 6,940 6,054 7,462 6,688 Provision for asset impairment and restructuring - - - - -------- -------- -------- --------- Total operating expenses 87,276 75,152 84,663 76,180 -------- -------- -------- --------- Income before expenses and income taxes 31,763 24,473 24,441 19,974 -------- -------- -------- --------- Other Expenses Interest expense, net 5,866 5,900 6,326 6,023 Minority interest - - - - -------- -------- -------- --------- Total other expenses 5,866 5,900 6,326 6,023 -------- -------- -------- --------- Income before income taxes 25,897 18,573 18,115 13,951 Income taxes 10,500 7,658 7,500 5,821 -------- -------- -------- --------- Net income before extraordinary item 15,397 10,915 10,615 8,130 -------- -------- -------- --------- Extraordinary item - loss from early extinguishment of debt (net of $747 tax benefit) - - - - -------- -------- -------- --------- Net income $15,397 $10,915 $10,615 $ 8,130 ======== ======== ======== ========= Pro forma earnings per share before extraordinary item(a) $0.24 $0.17 $0.17 $0.13 Pro forma extraordinary item per share - - - - -------- -------- -------- --------- Pro forma earnings per share(a) $0.24 $0.17 $0.17 $0.13 ======== ======== ======== ========= Pro forma weighted average shares outstanding 63,000 62,628 63,050 62,587 ======== ======== ======== =========
Choice Hotels International, Inc. Comparative Consolidated Statements of Income Three Months Ended Three Months Ended Twelve Months Ended February 28, February 29, May 31, May 31, May 31, May 31, (In thousands) 1997 1996 1997 1996 1997 1996 -------- -------- -------- -------- --------- -------- Revenues Royalties, initial fees and other $ 24,709 $22,609 $30,777 $ 25,684 $121,857 $106,931 Product sales 5,099 4,003 5,247 7,301 22,798 21,570 Marketing and reservations 20,837 20,386 23,966 23,556 99,521 95,133 Hotel operations 39,704 33,551 51,447 45,390 185,753 154,625 -------- -------- -------- -------- --------- -------- Total revenues 90,349 80,549 111,437 101,931 429,929 378,259 -------- -------- -------- -------- --------- -------- Operating Expenses Franchise marketing and reservations 22,167 19,916 22,445 24,305 96,725 92,446 Hotel operations 30,041 27,699 33,812 34,028 127,599 116,481 Franchise selling, general and administrative 11,550 12,714 11,821 8,250 51,102 45,196 Hotel selling, general and administrative 953 682 931 190 4,030 2,347 Product services cost of sales 5,536 3,824 5,429 6,981 22,766 20,709 Depreciation and amortization 7,640 6,418 7,755 6,902 29,797 26,062 Provision for asset impairment and restructuring - - - 33,335 - 33,335 -------- -------- -------- -------- --------- -------- Total operating expenses 77,887 71,253 82,193 113,991 332,019 336,576 -------- -------- -------- -------- --------- -------- Income before expenses and income taxes 12,462 9,296 29,244 (12,060) 97,910 41,683 -------- -------- -------- -------- --------- -------- Other Expenses Interest expense, net 6,414 6,418 7,080 5,952 25,686 24,293 Minority interest - - - 1,532 - 1,532 -------- -------- -------- -------- --------- -------- Total other expenses 6,414 6,418 7,080 7,484 25,686 25,825 -------- -------- -------- -------- --------- -------- Income before income taxes 6,048 2,878 22,164 (19,544) 72,224 15,858 Income taxes 2,600 1,487 9,600 (7,566) 30,200 7,400 -------- -------- -------- -------- --------- -------- Net income before extraordinary item 3,448 1,391 12,564 (11,978) 42,024 8,458 -------- -------- -------- -------- --------- -------- Extraordinary item - loss from early extinguishment of debt (net of $747 tax benefit) - - 1,144 - 1,144 - -------- -------- -------- -------- --------- -------- Net income $3,448 $ 1,391 $11,420 $(11,978) $ 40,880 $ 8,458 ======== ======== ======== ======== ========= ======== Pro forma earnings per share before extraordinary item(a) $0.05 $0.02 $0.20 ($0.19) $0.67 $0.14 Pro forma extraordinary item per share - - (0.02) - (0.02) - -------- -------- -------- -------- --------- -------- Pro forma earnings per share(a) $0.05 $0.02 $0.19 ($0.19) $0.65 $0.14 ======== ======== ======== ======== ========= ======== Pro forma weighted average shares outstanding 63,339 62,644 61,422 62,628 62,680 62,628 ======== ======== ======== ======== ========= ========
(a) The sum of these amounts does not equal the annual amount because of rounding. Note: earnings per share before extraordinary item, extraordinary item per share, earnings per share and weighted average shares outstanding are presented on a pro forma basis because the Company was a subsidiary of Manor Care, Inc. until November 1, 1996. -----END PRIVACY-ENHANCED MESSAGE-----