Comfort Inn 2004 Annual Report Download - page 25

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
2004 2003 2002
(In thousands, except
per share amounts)
REVENUES:
Royalty fees ................................................ $167,151 $151,326 $142,943
Initial franchise and relicensing fees ............................. 20,112 16,799 12,881
Partner services ............................................. 12,524 13,227 11,860
Marketing and reservation ..................................... 221,313 195,420 190,145
Hotel operations ............................................. 3,729 3,565 3,331
Other ...................................................... 3,977 5,767 4,402
Total revenues .......................................... 428,806 386,104 365,562
OPERATING EXPENSES:
Selling, general and administrative .............................. 69,654 62,860 56,520
Depreciation and amortization .................................. 9,947 11,225 11,251
Marketing and reservation ..................................... 221,313 195,420 190,145
Hotel operations ............................................. 2,892 2,616 2,946
Total operating expenses ................................. 303,806 272,121 260,862
Operating income ................................................ 125,000 113,983 104,700
OTHER INCOME AND EXPENSES:
Interest expense ............................................. 11,605 11,597 13,136
Interest and other investment income ............................ (1,093) (6,185) (4,549)
Gain on prepayment of note receivable from Sunburst ............... —(3,383) —
Equity in net (income) losses of affiliates ......................... (722) (582) 71
Loss on extinguishment of debt ................................. 696 ——
Other ...................................................... (10) 129 224
Total other income and expenses .......................... 10,476 1,576 8,882
Income before income taxes ...................................... 114,524 112,407 95,818
Income taxes ................................................... 40,179 40,544 34,974
Net income ..................................................... $ 74,345 $ 71,863 $ 60,844
Weighted average shares outstanding-basic ......................... 33,203 35,699 39,333
Weighted average shares outstanding-diluted ........................ 34,500 36,674 40,057
Basic earnings per share ......................................... $ 2.24 $ 2.01 $ 1.55
Diluted earnings per share ....................................... $ 2.15 $ 1.96 $ 1.52
Cash dividends declared per share ................................. $ 0.85 $ 0.20 $ —
The accompanying notes are an integral part of these consolidated financial statements.
F-17