Exhibit 99.1
CHOICE HOTELS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended
March 31, June 30, September 30, December 31, Calendar Calendar
(In thousands) 1997 1997 1997 1997 1997 1996
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REVENUES
Royalty fees $18,258 $26,913 $33,799 $27,329 $106,299 $ 97,975
Marketing and reservation fees 20,436 26,736 34,607 28,448 110,227 103,660
Product sales 6,414 5,486 5,800 6,106 23,806 25,192
Initial franchising fees and relicensing fees 4,184 4,647 2,870 4,395 16,096 15,602
Other, including partners service revenue 3,539 3,659 588 4,126 11,912 4,510
European hotel operations 3,733 4,855 4,284 4,431 17,303 18,728
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Total revenues 56,564 72,296 81,948 74,835 285,643 265,667
OPERATING EXPENSES
Franchise marketing and reservation 20,287 26,645 34,193 27,019 108,144 100,251
European hotel operations 3,681 4,208 3,786 3,949 15,624 16,606
Selling, general, and administrative 11,214 13,733 12,419 14,119 51,485 49,699
Product services cost of sales 6,161 5,185 5,510 5,913 22,769 23,173
Depreciation and amortization 2,564 2,672 2,465 2,852 10,553 10,718
Provision for asset impairment -- -- -- -- -- 24,760
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Total operating expenses 43,907 52,443 58,373 53,852 208,575 225,207
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Income before interest expense and income taxes 12,657 19,853 23,575 20,983 77,068 40,460
Interest expense, net 2,866 2,142 3,087 2,697 10,792 11,752
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Income before income taxes 9,791 17,711 20,488 18,286 66,276 28,708
Income taxes 4,078 7,377 8,533 7,616 27,604 12,459
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Net income $ 5,713 $10,334 $11,955 $10,670 $38,672 $16,249
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Weighted average shares outstanding 63,105 60,665 59,998 59,808 60,833 62,914
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Basic earnings per share $ 0.09 $ 0.17 $ 0.20 $ 0.18 $ 0.64 $ 0.26
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Note: Basic earnings per share and weighted average shares outstanding are
presented on a pro forma basis based upon its Parents' weighted average
shares outstanding prior to October 15, 1997 because the Company was a
subsidiary of Sunburst Hospitality Corporation.