Comfort Inn 2007 Annual Report Download - page 51

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CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
2007
2006
2005
(In thousands, except
per share amounts)
REVENUES:
Royalty fees............................................................................................................ $ 236,346 $ 211,645 $ 187,340
Initial franchise and relicensing fees ...................................................................... 33,389 29,629 25,388
Brand solutions....................................................................................................... 16,283 13,945 13,382
Marketing and reservation...................................................................................... 316,827 273,267 237,822
Hotel operations ..................................................................................................... 4,692 4,505 4,293
Other....................................................................................................................... 7,957 6,912 3,873
Total revenues ............................................................................................. 615,494 539,903 472,098
OPERATING EXPENSES:
Selling, general and administrative ........................................................................ 101,590 87,112 78,250
Depreciation and amortization ............................................................................... 8,637 9,705 9,051
Marketing and reservation...................................................................................... 316,827 273,267 237,822
Hotel operations ..................................................................................................... 3,241 3,194 3,225
Total operating expenses ............................................................................ 430,295 373,278 328,348
Operating income............................................................................................................. 185,199 166,625 143,750
OTHER INCOME AND EXPENSES:
Interest expense...................................................................................................... 14,293 14,098 15,325
Interest and other investment income..................................................................... (1,750) (2,041) (1,094)
Equity in net income of affiliates ........................................................................... (1,230) (1,052) (803)
Loss on extinguishment of debt.............................................................................. — 342 —
Other....................................................................................................................... — — (420)
Other income and expenses, net................................................................. 11,313 11,347 13,008
Income before income taxes .......................................................................................... 173,886 155,278 130,742
Income taxes ................................................................................................................... 62,585 42,491 43,177
Net income ...................................................................................................................... $ 111,301 $ 112,787 $ 87,565
Weighted average shares outstanding-basic ................................................................ 64,213 65,387 64,429
Weighted average shares outstanding-diluted............................................................. 65,331 67,050 66,336
Basic earnings per share................................................................................................ $ 1.73 $ 1.72 $ 1.36
Diluted earnings per share ............................................................................................ $ 1.70 $ 1.68 $ 1.32
Cash dividends declared per share............................................................................... $ 0.64 $ 0.56 $ 0.485
The accompanying notes are an integral part of these consolidated financial statements.
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