 Investor Presentation June 2012 Exhibit 99.1 |
 2 DISCLAIMER 2 Certain matters discussed throughout all of this presentation constitute forward-looking statements within the meaning of the federal securities laws. Generally, our use of words such as “expect,” “estimate,” “believe,” “anticipate,” “will,” “forecast,” “plan,” “project,” “assume” or similar words of futurity identify statements that are forward-looking and that we intend to be included within the Safe Harbor protections provided by Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are based on management’s current beliefs, assumptions and expectations regarding future events, which in turn are based on information currently available to management. Such statements may relate to projections for the company’s revenue, earnings and other financial and operational measures, company debt levels, payment of dividends and future operations. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this presentation. Forward- looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors. Several factors could cause actual results, performance or achievements of the company to differ materially from those expressed in or contemplated by the forward-looking statements. Such risks include, but are not limited to, changes to general, domestic and foreign economic conditions; operating risks common in the lodging and franchising industries; changes to the desirability of our brands as viewed by hotel operators and customers; changes to the terms or termination of our contracts with franchisees; our ability to keep pace with improvements in technology utilized for reservations systems and other operating systems; fluctuations in the supply and demand for hotel rooms; and our ability to effectively manage our indebtedness. These and other risk factors are discussed in detail in the Risk Factors section of the company’s Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on February 29, 2012. We undertake no obligation to publicly update or revise any forward- looking statement, whether as a result of new information, future events or otherwise. |
 3 CHOICE HOTELS OVERVIEW Growing US hotel market share* – 9.6% share of branded US hotels (+80 basis points over trailing 5 years)* – 2 nd largest U.S. hotelier 70+ year-old hotel distribution company with well-known, diversified brands suitable for various stages of hotel life cycle Core competencies and services drive demand for our brands and deliver business for our franchisees Global pipeline of 471 hotels under construction, awaiting conversion or approved for development Source: Choice Internal Data, March 31, 2012 and December 31, 2011 * Based on number of hotels as March 31, 2012 (Smith Travel Research) Fee-for-service business model Predictable, profitable, long-term growth in a variety of lodging and economic environments Cumulative free cash flows of approximately $1.4 billion from 1997 through 2011. – 100% returned to shareholders through share repurchases and dividends Capital “light” model generates strong after-tax returns on invested capital Long-term franchise contracts and scale represent barriers to entry Strong, Growing, Global Hotel Franchising Business Highly Attractive Business Model With Strong Financial Returns 3 |
 4 Source: Smith Travel Research, March 31, 2012 ONE OF THE LARGEST HOTELIERS Market Share % 11.2% 9.6% 6.3% 6.0% 5.9% 3.8% 2.0% 1.1% 0.9% 0.7% 5 yr. bps (07-12) -10 +80 +110 +30 +80 -70 +30 -50 +20 -70 Market Share (% of Hotels Open in U.S.) 4 0 2 4 6 8 10 12 Wyndham Choice Hilton IHG Marriott Best Western Accor Carlson Starwood Hyatt Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 |
 5 5 Conversion $42,000+ $120,000+ $50 $70 $100+ Targeted Average Daily Rate $85 FAMILY OF WELL-KNOWN AND DIVERSIFIED BRANDS New Construction * Excludes cost of land; based on average domestic per-room investment. Source: Choice Internal Data, April 2012 |
 6 6 STRONG LIMITED SERVICE NEW CONSTRUCTION BRANDS POSITIONED WELL FOR LONG-TERM GROWTH Source: Smith Travel Research, Choice Internal Data, March 31, 2012 Hampton Inn / Inn & Suites Holiday Inn Express La Quinta Inn / Inn & Suites Fairfield Inn Country Inn & Suites Domestic Hotels |
 7 7 SIGNIFICANT GROWTH OPPORTUNITIES REMAIN IN LARGE CONVERSION MARKET Chart does not include independent hotels in budget, economy and mid-scale segments Domestic Hotels Hampton Inn / Hampton Inn & Suites Holiday Inn Express Days Inn Motel 6 America’s Best Value Inn Holiday Inn / Holiday Inn Select La Quinta Inn / La Quinta Inn & Suites Fairfield Inn Ramada / Ramada Plaza Travelodge Red Roof Inn Howard Johnson Knight’s Inn Microtel Best Western Super 8 Source: Smith Travel Research, Choice Internal Data, March 31, 2012 ® |
 8 8 DOMESTIC PIPELINE OF 388 HOTELS Mid-scale Extended Stay Economy Upscale Source: Choice Internal Data, March 31, 2012 |
 9 9 SERVICES LIFECYCLE IMPROVES BRANDS AND PROPERTY PERFORMANCE Brand Planning and Management Brand Performance • Revenue and guest service consulting • Inventory and rate management • Local sales and marketing • Independent third-party quality assurance Training • On-site • Regional • Web-based • GM Certification Opening Services • Ensure hotels open successfully and meet or exceed brand standards Portfolio Management • Repositioning • Relicensing • Termination Procurement Services • Value-engineered prototypes and design packages • Negotiated vendor relationships Targeted, differentiated programs, amenities and services for each brand FRANCHISED FRANCHISED PROPERTIES PROPERTIES RETURN ON RETURN ON INVESTMENT INVESTMENT |
 10 10 1,168 properties in approximately 30 countries and territories on five continents Multi-year investments in IT and marketing planned to enhance value proposition for international hotels STRONG PRESENCE IN MAJOR TRAVEL MARKETS OUTSIDE OF THE U.S. Source: Choice Internal Data, March 31, 2012 307 hotels Canada 160 hotels Scandinavia 3 hotels China 52 hotels Japan 251 hotels Continental Europe, UK & Ireland 23 hotels Mexico 15 hotels Central America 59 hotels Brazil 1 hotel Jordan 27 hotels India 1 hotel Singapore 1 hotel Malaysia 268 hotels Australia & New Zealand Significant long- term growth opportunity in underrepresented regions/countries |
 11 11 MARKETING AND CENTRAL RESERVATION SYSTEM LEVERAGES SIZE, SCALE AND DISTRIBUTION $300-plus million in annual marketing and reservation system fees Leverage expertise and innovation in on-line, targeted interactive marketing to influence guest hotel stay decisions Powerful advertising campaigns Focus on driving guests to Choice central channels Facilitate “one-stop” shopping Strong and growing global loyalty program Increasing brand awareness Source: Choice Internal Data, December 2011 |
 12 12 STRONG AND GROWING AIDED BRAND AWARENESS Source: Percentage of survey respondents. Millward Brown, December 2011. *Econo Lodge, Rodeway Inn and Suburban Extended Stay measured among economy hotel users. N/A N/A N/A N/A |
 13 13 STRONG, GROWING LOYALTY PROGRAM Choice Privileges Revenue as Percent of Domestic Gross Room Revenues* Source: Choice Internal Data, December 31, 2011 * 2001-2008 Data Excludes Econo Lodge and Rodeway Inn brands Comprehensive loyalty rewards program 14 million members worldwide – contribute over ¼ of domestic gross room revenues 2.1 million new members added in 2011 Delivers incremental business to all Choice brand hotels Important selling point for franchise sales |
 14 14 CENTRAL RESERVATIONS SYSTEM (CRS) DELIVERY PUTS “HEADS IN BEDS” All Hotel Direct Reservation Choice Central Reservation Contribution 1/3 1/3 Domestic Franchise System Gross Room Revenue Source Domestic Choice CRS Net Room Revenue Source: Choice Internal Data, December 31, 2011 |
 15 15 Central Channel ADR “Premium” Domestic Choice CRS Net Channel Share CENTRAL RESERVATIONS BOOKINGS CREATE SIGNIFICANT VALUE FOR FRANCHISEES Source: Choice Internal Data, December 2011 $68.42 $71.93 $74.53 $76.90 $77.56 $82.31 2006 2007 2008 2009 2010 2011 Systemwide Call Center choicehotels.com |
 16 CONVERSION BRAND FRANCHISE SALES OPPORTUNITY IN SOFT NEW CONSTRUCTION ENVIRONMENT Source: Choice Internal Data, December 31, 2011 |
 17 STRONG, STEADY FRANCHISE SYSTEM GROWTH Domestic Hotels On-Line Domestic Rooms On-Line (in thousands) CAGR = 4.2% CAGR = 3.5% CAGR = 3.8% CAGR = 3.0% Source: Choice Internal Data, December 31, 2011 |
 18 18 FRANCHISING REVENUE STREAM LESS VOLATILE THAN REVPAR $0 $50 $100 $150 $200 $250 $300 $350 -17% -12% -7% -2% 3% 8% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 CHH RevPAR STR Chain Scale (Supply Weighted) Industry RevPAR CHH Franchising Revenue ($ in millions) Source: Smith Travel Research, Choice Internal Data, December 2011 |
 19 19 ADJUSTED EBITDA LESS VOLATILE THAN INDUSTRY PROFITABILITY Source: Smith Travel Research, Choice Internal Data, December 2011 ($ in millions) ($ in billions) 0 50 100 150 200 250 0 5 10 15 20 25 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Industry Profits CHH Adjusted EBITDA |
 20 20 CAPITAL “LIGHT” MODEL GENERATES STRONG RETURNS ON INVESTED CAPITAL 15.2% 16.1% 14.7% 19.5% 27.6% 36.7% 49.7% 62.9% 78.5% 68.8% 59.5% 48.1% 48.0% 47.2% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 After-Tax Return On Invested Capital Source: Choice Internal Data, December 2011 |
 21 21 TRACK RECORD OF STRONG EARNINGS PER SHARE PERFORMANCE Adjusted Diluted Earnings Per Share Note: See appendix for reconciliation of adjusted diluted earnings per share to diluted earnings per share. To improve comparability certain employee severance amounts included in the determination of adjusted diluted earnings per share in this presentation for 2007 through 2011 differ from amounts reported in Exhibits 8 of our various earnings announcements. Source: Choice Internal Data, December 2011. Per Share Amounts Retroactively Adjusted For 2005 Stock Split. 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $0.40 $0.51 $0.51 $0.58 $0.76 $0.93 $1.07 $1.25 $1.48 $1.73 $1.73 $1.68 $1.81 $1.90 |
 22 22 Remaining authority on current authorization – 1.6 million shares as of March 31, 2012 OPPORTUNISTIC SHARE REPURCHASES KEY PART OF CAPITAL ALLOCATION STRATEGY Source: Capital IQ, December 2011, Choice Internal Data, March 31, 2012 and December 31, 2011. Share amounts for 2005 and prior years retroactively adjusted for 2005 two-for-one stock split. |
 23 23 HIGH CASH DIVIDEND YIELD COMPARED TO OTHER LODGING C-CORPS Source: Thomson One, May 31, 2012 Choice Great Wolf Wyndham Gaylord Hyatt Orient- Express Starwood Red Lion Marriott IHG |
 24 24 STRATEGY FOR CHOICE’S BRANDS, GROWTH AND SHAREHOLDERS Improve and Grow Brands – Increase portfolio profitability of the Comfort brand family – Refresh Sleep Inn to improve long-term brand growth potential – Invest in and expand emerging brands/segments – Cambria, Ascend, International Capture Greater Share of Reservations Via Central Channels – Grow Choice Privileges loyalty program – target 2.0 million new members in 2012 – Continue to enhance ChoiceHotels.com to increase traffic and conversion Allocate Free Cash Flows To “Best And Highest” Use – Continue shareholder-friendly capital allocation policies – Leverage financial capacity/strength to support expansion of emerging brands – Evaluate opportunities to enter new segments – Invest in IT infrastructure to shore up value proposition for international properties |
 25 25 Appendix Reconciliation of Non-GAAP Financial Measurements to GAAP |
 26 26 DISCLAIMER Adjusted franchising margins, adjusted earnings before interest, taxes depreciation and amortization (EBITDA), adjusted net income, adjusted diluted earnings per share (EPS), franchising revenues, net operating profit after tax (NOPAT), return on average invested capital (ROIC) and free cash flows are non- GAAP financial measurements. These financial measurements are presented as supplemental disclosures because they are used by management in reviewing and analyzing the company’s performance. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (GAAP), such as operating income, net income, diluted earnings per share, total revenues or net cash provided by operating activities. The calculation of these non-GAAP measures may be different from the calculation by other companies and therefore comparability may be limited. The company has included the following appendix which reconcile these measures to the comparable GAAP measurement. |
  27 27 FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS Note: To improve comparability certain employee severance amounts included in the determination of adjusted franchising margins in this presentation for 2007 through 2011 differ from amounts reported in exhibit 8 of our year-end earnings announcements for those years. Source: Choice Internal Data, December 2011 ($ amounts in thousands) Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2011 2010 2009 2008 2007 2006 2005 Total Revenues 638,793 $ 596,076 $ 564,178 $ 641,680 $ 615,494 $ 539,903 $ 472,098 $ Adjustments: Marketing and Reservation (349,036) (329,246) (305,379) (336,477) (316,827) (273,267) (237,822) Product Sales - - - - - - - Hotel Operations (4,356) (4,031) (4,140) (4,936) (4,692) (4,505) (4,293) Franchising Revenues 285,401 $ 262,799 $ 254,659 $ 300,267 $ 293,975 $ 262,131 $ 229,983 $ Operating Income 171,863 $ 160,762 $ 148,073 $ 174,596 $ 185,199 $ 166,625 $ 143,750 $ Adjustments Hotel Operations (890) (845) (987) (1,502) (1,451) (1,311) (1,068) Acceleration of Management Succession Plan - - - 6,605 - - - Executive Termination Benefits 2,704 1,217 3,321 - 3,690 - - Curtailment of SERP - - 1,209 - - - - Loss on Sublease of Office Space - - 1,503 - - - - Loan Reserves Related to Impaired Notes Receivable - - - 7,555 - - - Product Sales - - - - - - - Impairment of Friendly Investment - - - - - - - Net 173,677 $ 161,134 $ 153,119 $ 187,254 $ 187,438 $ 165,314 $ 142,682 $ Adjusted Franchising Margin 60.9% 61.3% 60.1% 62.4% 63.8% 63.1% 62.0% |
  28 28 FRANCHISING REVENUES AND ADJUSTED FRANCHISING MARGINS (Continued) Source: Choice Internal Data, December 2011 ($ amounts in thousands) Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2004 2003 2002 2001 2000 1999 1998 Total Revenues 428,208 $ 385,866 $ 365,562 $ 341,428 $ 352,841 $ 324,203 $ 165,474 $ Adjustments: Marketing and Reservation (220,732) (195,219) (190,145) (168,170) (185,367) (162,603) - Product Sales - - - - - (3,871) (20,748) Hotel Operations (3,729) (3,565) (3,331) (3,215) (1,249) - (1,098) Franchising Revenues 203,747 $ 187,082 $ 172,086 $ 170,043 $ 166,225 $ 157,729 $ 143,628 $ Operating Income 124,983 $ 113,946 $ 104,700 $ 73,577 $ 92,427 $ 94,170 $ 85,151 $ Adjustments Hotel Operations (725) (842) (385) (714) (640) - 35 Acceleration of Management Succession Plan - - - - - - - Executive Termination Benefits - - - - - - - Curtailment of SERP - - - - - - - Loss on Sublease of Office Space - - - - - - - Loan Reserves Related to Impaired Notes Receivable - - - - - - - Product Sales - - - - - 12 (1,216) Impairment of Friendly Investment - - - 22,713 - - - Net 124,258 $ 113,104 $ 104,315 $ 95,576 $ 91,787 $ 94,182 $ 83,970 $ Adjusted Franchising Margin 61.0% 60.5% 60.6% 56.2% 55.2% 59.7% 58.5% |
 29 29 RETURN ON INVESTED CAPITAL (a) Operating income and tax rate for the year ended December 31, 2001 have been adjusted to exclude the effect of a $22.7 million impairment charge related to the write-off of the company’s investment in Friendly Hotels. Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2011 2010 2009 2008 2007 2006 2005 Operating Income (a) $171.9 $160.8 $148.1 $174.6 $185.2 $166.6 $143.8 Tax Rate(a) 30.1% 32.1% 34.8% 36.3% 36.0% 27.4% 33.0% After-Tax Operating Income 120.2 109.2 96.6 111.2 118.5 121.0 96.3 + Depreciation & Amortization 8.0 8.3 8.3 8.2 8.6 9.7 9.1 - Maintenance CAPEX 8.0 8.3 8.3 8.2 8.6 9.7 9.1 Net Op. Profit After-tax (NOPAT) $120.2 $109.2 $96.6 $111.2 $118.5 $121.0 $96.3 Total Assets $447.7 $411.7 $340.0 $328.2 $328.4 $303.3 $265.3 - Current Liabilities 184.6 165.3 131.8 135.1 147.5 139.8 120.3 Invested Capital $263.1 $246.4 $208.2 $193.1 $180.9 $163.5 $145.0 Return on Average Invested Capital 47.2% 48.0% 48.1% 59.5% 68.8% 78.5% 62.9% |
  30 30 RETURN ON INVESTED CAPITAL (Continued) (a) Operating income and tax rate for the year ended December 31, 2001 have been adjusted to exclude the effect of a $22.7 million impairment charge related to the write-off of the company’s investment in Friendly Hotels. Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2004 2003 2002 2001 2000 1999 1998 Operating Income (a) $125.0 $113.9 $104.7 $96.3 $92.4 $94.2 $85.2 Tax Rate(a) 35.1% 36.1% 36.5% 35.0% 39.0% 39.5% 41.7% After-Tax Operating Income 81.1 72.8 66.5 62.6 56.4 57.0 49.7 + Depreciation & Amortization 9.9 11.2 11.3 12.5 11.6 7.7 6.7 - Maintenance CAPEX 9.9 11.2 11.3 12.5 11.6 7.7 6.7 Net Op. Profit After-tax (NOPAT) $81.1 $72.8 $66.5 $62.6 $56.4 $57.0 $49.7 Total Assets $263.4 $267.3 $316.8 $321.2 $484.1 $464.7 $398.2 - Current Liabilities 102.1 102.2 84.3 71.2 93.8 88.7 64.7 Invested Capital $161.3 $165.1 $232.5 $250.0 $390.3 $375.9 $333.6 Return on Average Invested Capital 49.7% 36.7% 27.6% 19.5% 14.7% 16.1% 15.2% |
 31 31 FREE CASH FLOWS Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2011 2010 2009 2008 2007 2006 2005 Net Cash Provided by Operating Activities 134,844 $ 144,935 $ 112,216 $ 104,399 $ 145,666 $ 153,680 $ 133,588 $ Net Cash Provided (Used) by Investing Activities (23,804) (32,155) (3,349) (20,265) (21,284) (17,244) (24,531) Free Cash Flows 111,040 $ 112,780 $ 108,867 $ 84,134 $ 124,382 $ 136,436 $ 109,057 $ |
  32 32 FREE CASH FLOWS (Continued) Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, ($ in thousands) 2004 2003 2002 2001 2000 1999 1998 Net Cash Provided by Operating Activities 108,908 $ 115,304 $ 99,018 $ 101,712 $ 53,879 $ 65,040 $ 38,952 $ Net Cash Provided (Used) by Investing Activities (14,544) 27,784 (14,683) 87,738 (16,617) (36,031) (9,056) Free Cash Flows 94,364 $ 143,088 $ 84,335 $ 189,450 $ 37,262 $ 29,009 $ 29,896 $ |
 33 33 Note: To improve comparability certain employee severance amounts included in the determination of adjusted EBITDA in this presentation for 2007 through 2011 differ from amounts reported in exhibits 8 of our various earnings announcements. Source: Choice Internal Data, December 2011 ADJUSTED EBITDA Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended ($ in thousands) December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2011 2010 2009 2008 2007 2006 2005 Operating Income 171,863 $ 160,762 $ 148,073 $ 174,596 $ 185,199 $ 166,625 $ 143,750 $ Adjustments Acceleration of Management Succession Plan - - - 6,605 - - - Loss on Sublease of Office Space - - 1,503 - - - - Executive Termination Benefits 2,704 1,217 3,321 - 3,690 - - Curtailment of SERP - - 1,209 - - - - Loan Reserves Related to Impaired Notes Receivable - - - 7,555 - - - Product Sales - - - - - - - Impairment of Friendly investment - - - - - - - Depreciation and Amortization 8,024 8,342 8,336 8,184 8,637 9,705 9,051 Adjusted EBITDA 182,591 $ 170,321 $ 162,442 $ 196,940 $ 197,526 $ 176,330 $ 152,801 $ |
 34 34 ADJUSTED EBITDA (Continued) Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended ($ in thousands) December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2004 2003 2002 2001 2000 1999 1998 Operating Income 124,983 $ 113,946 $ 104,700 $ 73,577 $ 92,427 $ 94,170 $ 85,151 $ Adjustments Acceleration of Management Succession Plan - - - - - - - Loss on Sublease of Office Space - - - - - - - Executive Termination Benefits - - - - - - - Curtailment of SERP - - - - - - - Loan Reserves Related to Impaired Notes Receivable - - - - - - - Product Sales - - - - - 12 (1,216) Impairment of Friendly investment - - - 22,713 - �� - - Depreciation and Amortization 9,947 11,225 11,251 12,452 11,623 7,687 6,710 Adjusted EBITDA 134,930 $ 125,171 $ 115,951 $ 108,742 $ 104,050 $ 101,869 $ 90,645 $ |
  35 35 ADJUSTED DILUTED EARNINGS PER SHARE Note: To improve comparability certain employee severance amounts included in the determination of adjusted franchising margins in this presentation for 2007 through 2011 differ from amounts reported in exhibit 8 of our year-end earnings announcements for those years. Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, (In thousands, except per share amounts) 2011 2010 2009 2008 2007 2006 2005 Net Income 110,396 $ 107,441 $ 98,250 $ 100,211 $ 111,301 $ 112,787 $ 87,565 $ Adjustments: Loss(Gain) on Extinguishment of Debt, Net of Taxes - - - - - 217 - Acceleration of Management Sucession Plan, Net of Taxes - - - 4,135 - - - Executive Termination Benefits, Net of Taxes 1,711 762 2,079 - 2,310 - - Loss on Land Held For Sale 1,119 - - - - - - Loss on Sublease of Office Space, Net of Taxes - - 941 - - - - Curtailment of SERP, Net of Taxes - - 757 - - - - Loan Reserves Related to Impaired Notes Receivable, Net of Taxes - - - 4,729 - - - Resolution of Provisions for Income Tax Contingencies - - - - - (12,791) (4,855) Income Tax Expense Incurred Due to Foreign Earnings Repatriation - - - - - - 1,192 Loss(Gain) on Sunburst Note Transactions, Net of Taxes - - - - - - - Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes - - - - - - - Adjusted Net Income 113,226 $ 108,203 $ 102,027 $ 109,075 $ 113,611 $ 100,213 $ 83,902 $ Weighted Average Shares Outstanding-Diluted 59,525 59,656 60,224 62,994 65,766 67,490 66,759 Diluted Earnings Per Share 1.85 $ 1.80 $ 1.63 $ 1.59 $ 1.69 $ 1.67 $ 1.31 $ Adjustments: Loss(Gain) on Extinguishment of Debt, Net of Taxes - - - - - - - Acceleration of Management Sucession Plan, Net of Taxes - - - 0.07 - - - Executive Termination Benefits, Net of Taxes 0.03 0.01 0.02 - 0.04 - - Loss on Land Held For Sale 0.02 - - - - - - Loss on Sublease of Office Space, Net of Taxes - - 0.02 - - - - Curtailment of SERP, Net of Taxes - - 0.01 - - - - Loan Reserves Related to Impaired Notes Receivable, Net of Taxes - - - 0.07 - - - Resolution of Provisions for Income Tax Contingencies - - - - - (0.19) (0.08) Income Tax Expense Incurred Due to Foreign Earnings Repatriation - - - - - - 0.02 Loss(Gain) on Sunburst Note Transactions, Net of Taxes - - - - - - - Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes - - - - - - - Adjusted Diluted Earnings Per Share (EPS) 1.90 $ 1.81 $ 1.68 $ 1.73 $ 1.73 $ 1.48 $ 1.25 $ |
  36 36 ADJUSTED DILUTED EARNINGS PER SHARE (Continued) Source: Choice Internal Data, December 2011 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended December 31, December 31, December 31, December 31, December 31, December 31, December 31, (In thousands, except per share amounts) 2004 2003 2002 2001 2000 1999 1998 Net Income 74,345 $ 71,863 $ 60,844 $ 14,327 $ 42,445 $ 57,155 $ 55,305 $ Adjustments: Loss(Gain) on Extinguishment of Debt, Net of Taxes 433 - - - - - (7,232) Acceleration of Management Sucession Plan, Net of Taxes - - - - - - - Executive Termination Benefits, Net of Taxes - - - - - - - Loss on Land Held For Sale - - - - - - - Loss on Sublease of Office Space, Net of Taxes - - - - - - - Curtailment of SERP, Net of Taxes - - - - - - - Loan Reserves Related to Impaired Notes Receivable, Net of Taxes - - - - - - - Resolution of Provisions for Income Tax Contingencies (1,182) - - - - - - Income Tax Expense Incurred Due to Foreign Earnings Repatriation - - - - - - - Loss(Gain) on Sunburst Note Transactions, Net of Taxes - (3,383) - - 4,721 - - Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes - - - 37,166 7,532 - - Adjusted Net Income 73,596 $ 68,480 $ 60,844 $ 51,493 $ 54,698 $ 57,155 $ 48,073 $ Weighted Average Shares Outstanding-Diluted 69,000 73,349 80,114 89,144 106,506 111,334 119,096 Diluted Earnings Per Share 1.08 $ 0.98 $ 0.76 $ 0.16 $ 0.40 $ 0.51 $ 0.46 $ Adjustments: Loss(Gain) on Extinguishment of Debt, Net of Taxes 0.01 - - - - - (0.06) Acceleration of Management Sucession Plan, Net of Taxes - - - - - - - Executive Termination Benefits, Net of Taxes - - - - - - - Loss on Land Held For Sale - - - - - - - Loss on Sublease of Office Space, Net of Taxes - - - - - - - Curtailment of SERP, Net of Taxes - - - - - - - Loan Reserves Related to Impaired Notes Receivable, Net of Taxes - - - - - - - Resolution of Provisions for Income Tax Contingencies (0.02) - - - - - - Income Tax Expense Incurred Due to Foreign Earnings Repatriation - - - - - - - Loss(Gain) on Sunburst Note Transactions, Net of Taxes - (0.05) - - 0.04 - - Impairment of and Equity Losses in Friendly Hotels PLC Investment, Net of Taxes - - - 0.42 0.07 - - Adjusted Diluted Earnings Per Share (EPS) 1.07 $ 0.93 $ 0.76 $ 0.58 $ 0.51 $ 0.51 $ 0.40 $ |