Comfort Inn 2003 Annual Report Download - page 21

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
2003 2002 2001
(In thousands, except
per share amounts)
REVENUES:
Royalty fees ................................................ $151,326 $142,943 $140,185
Initial franchise and relicensing fees ............................. 16,799 12,881 12,887
Partner services ............................................. 13,227 11,860 12,042
Marketing and reservation ..................................... 195,420 190,145 168,170
Hotel operations ............................................. 3,565 3,331 3,215
Other ...................................................... 5,767 4,402 4,929
Total revenues .......................................... 386,104 365,562 341,428
OPERATING EXPENSES:
Selling, general and administrative .............................. 62,860 56,520 62,015
Impairment of Friendly investment .............................. —— 22,713
Depreciation and amortization .................................. 11,225 11,251 12,452
Marketing and reservation ..................................... 195,420 190,145 168,170
Hotel operations ............................................. 2,616 2,946 2,501
Total operating expenses ................................. 272,121 260,862 267,851
Operating income ................................................ 113,983 104,700 73,577
OTHER INCOME AND EXPENSES:
Interest expense ............................................. 11,597 13,136 15,445
Interest and other investment income ............................ (6,185) (4,549) (4,329)
Gain on prepayment of note receivable from Sunburst ............... (3,383) ——
Equity in net (income) losses of affiliates ......................... (582) 71 16,436
Other ...................................................... 129 224 608
Total other income and expenses .......................... 1,576 8,882 28,160
Income before income taxes ...................................... 112,407 95,818 45,417
Income taxes ................................................... 40,544 34,974 31,090
Net income ..................................................... $ 71,863 $ 60,844 $ 14,327
Weighted average shares outstanding-basic ......................... 35,699 39,333 44,174
Weighted average shares outstanding-diluted ........................ 36,674 40,057 44,572
Basic earnings per share ......................................... $ 2.01 $ 1.55 $ 0.32
Diluted earnings per share ....................................... $ 1.96 $ 1.52 $ 0.32
The accompanying notes are an integral part of these consolidated financial statements.
F-14