Thursday, Choice Hotels International, Inc.(CHH)reported an increase in profit for the fourth quarter,on lower operating expenses, despite a 9% decline in revenue. However, both earnings and revenue came above analysts estimates.
Silver Spring, Maryland-based Choice Hotels reported net income was $23.63 million or $0.40 per share, up from $18.71 million or $0.30 per share in the previous year quarter.
On adjusted basis, net income slightly increased to $25.84 million or $0.43 per share from $25.46 million or $0.41 per share in the same quarter last year.
On average, 13 analysts polled by Thomson Reuters expected the company to report profit of $0.41 per share for the quarter. Analysts' estimates typically exclude one-time items.
Results for the quarter and full year, the company recorded employee termination benefits of about $2.3 million and $4.6 million, respectively, a curtailment loss related to freezing the benefits payable under its Supplemental Executive Retirement Plan totaling $1.2 million and $1.5 million charge related to the sublease of a portion of its office space.
Total revenues for the quarter declined 9% to $140.70 million from $154.49 million in the comparable quarter last year. Eight analysts had a consensus revenue estimate of $138.90 million for the quarter.
Franchising revenues declined 13% to $62.2 million from $71.3 million a year-ago. Domestic system-wide revenue per available room or RevPAR declined 14.4% from last year.
Royalty fees for the quarter was down to $53.21 million from $59.28 million a year ago. Initial franchise and re-licensing fees plunged to $3.31 million from $6.72 million. Revenues from Procurement services increased to $3.51 million from $3.49 million and revenues from Marketing and Reservation declined to $77.57 million from $81.90 million in the year-ago period.
Revenues from Hotel operations were $0.90 million, compared to $1.25 million last year. Other revenues was up to $2.17 million from $1.82 million in the same quarter last year.
Total operating expenses edged down to $106.61 million from $120.39 million in the same quarter last year.
For the full year, the company reported net income of $98.25 million or $1.63 per share compared to $100.21 million or $1.59 per share last year. Adjusted net income decreased to $102.83 million or $1.71 per share from $111.28 million or $1.77 per share in the prior year. Total revenues slipped to $564.17 million from $641.68 million a year-ago.
Analysts expected earnings of $1.68 per share on revenues of $562.38 million for the full year.
Looking ahead to fiscal 2010, the company expects first quarter earnings of $0.25 per share, while full year earnings are expected to be between $1.65 and $1.70 per share.
Analysts estimate earnings of $0.27 per share for the first quarter and $1.67 per share for the fiscal 2010.
CHH closed Thursday's regular trading at $31.69, up $ 0.23 or 0.73% on a volume of 0.14 million shares on the NYSE. In the after hours the stock fell 2.18% or $0.69, trading at $31.00.
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