SILVER SPRING, Md. (February 14, 2002) - Choice Hotels International, Inc., (NYSE:CHH) announced it will report fourth quarter net income and diluted earnings per share (exclusive of certain charges described below) of $12.6 million and $0.29, respectively. For the year ended December 31, 2001, the company also announced net income and diluted EPS (exclusive of certain charges described below) will be $55.6 million and $1.25, respectively, consistent with analysts` consensus estimates.
The company will conduct a conference call on Thursday, February 21, 2002, at 11 a.m. Eastern time to discuss the company`s fourth quarter and year-end 2001 earnings in detail. The company will release its earnings prior to the opening of trading on the New York Stock Exchange that morning.
In the fourth quarter, Choice will record charges related to its investment in Friendly Hotels, PLC, of approximately $21 million after tax or a negative $0.48 per share in addition to a previously announced restructuring charge of $5.9 million pre-tax or negative $0.09 per share. The non-cash charge related to the company`s investment in Friendly is necessary to adjust the investment to its estimated fair value. The impact of these charges will serve to reduce fourth quarter net income by $24.5 million and reported diluted earnings per share by $0.57. As a result, the company will report a net loss for the fourth quarter of $11.9 million or $0.28 per diluted share. For the year ended December 31, 2001, after including the impact of the charges described above and other previously recorded charges, the company will report net income of $21.6 million or $0.48 per diluted share.
The company will discuss the details of its fourth quarter and full year results in the upcoming February 21 conference call. The call-in number to listen to the call is 1-888-614-6582. The conference call also will be Webcast simultaneously via the company`s Web site, www.choicehotels.com. Interested investors and other parties wishing to access the call on the Web should go to the Web site, click on the Corporate Information link and then the Investor Info link. The Investor Info page will feature a conference call microphone icon to access the call.