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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): March 27, 1998
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Choice Hotels International, Inc.
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(Exact Name of Registrant as Specified in Charter)
Delaware 52-1209792
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(State or Other Jurisdiction (IRS Employer
of Incorporation) Identification No.)
10750 Columbia Pike
Silver Spring, Maryland 20901
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(Address of Principal Executive Offices)
(301) 979-5000
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(Registrant's telephone number, including area code)
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ITEM 5. Other Events
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Choice Hotels International, Inc. ("Choice" and, together with its
subsidiaries, the "Company") deems the information attached hereto as Exhibit
99.1, and incorporated herein by reference, to be of importance to its security
holders, as it provides calendarized unaudited financial information for the
twelve months ended December 31, 1997 on a quarterly basis. This
reclassification does not require any amendments to the Company's reports
filed under the Securities Exchange Act of 1934, as amended.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
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99.1 Choice Hotels International, Inc. Consolidated
Statement of Income for the Twelve Months Ended December 31,
1997 and the three months ended March 31, 1997, June 30, 1997,
September 30, 1997 and December 31, 1997.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Choice Hotels International, Inc.
By: /s/ Donald H. Dempsey
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Donald H. Dempsey
Executive Vice President,
Chief Financial Officer
and Treasurer
Date: March 27, 1998
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CHOICE HOTELS INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31, June 30, September 30, December 31, Calendar
(In thousands) 1997 1997 1997 1997 1997
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<S> <C> <C> <C> <C> <C>
REVENUES
Royalty fees $17,662 $26,913 $33,799 $27,329 $105,703
Marketing and reservation fees 18,736 28,436 34,607 28,448 110,227
Product sales 5,558 4,987 5,800 6,106 22,451
Initial franchising fees and relicensing fees 4,184 4,647 2,870 4,395 16,096
Other, including partners service revenue 4,991 4,645 588 4,126 14,350
European hotel operations 3,733 4,855 4,284 4,431 17,303
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Total revenues 54,864 74,483 81,948 74,835 286,130
OPERATING EXPENSES
Franchise marketing and reservation 20,287 26,645 34,193 27,019 108,144
European hotel operations 3,681 4,208 3,786 3,949 15,624
Selling, general, and administrative 11,541 14,345 12,419 14,119 52,424
Product services cost of sales 5,834 5,060 5,510 5,913 22,317
Depreciation and amortization 2,564 2,672 2,465 2,852 10,553
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Total operating expenses 43,907 52,930 58,373 53,852 209,062
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Income before interest expense and income taxes 10,957 21,553 23,575 20,983 77,068
Interest expense, net 2,866 2,142 3,087 2,697 10,792
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Income before income taxes 8,091 19,411 20,488 18,286 66,276
Income taxes 3,370 8,085 8,533 7,616 27,604
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Net income $ 4,721 $11,326 $11,955 $10,670 $38,672
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Weighted average shares outstanding 63,105 60,665 59,998 59,808 60,833
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Basic earnings per share $ 0.07 $ 0.19 $ 0.20 $ 0.18 $ 0.64
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</TABLE>
Note: Basic earnings per share and weighted average shares outstanding are
presented on a pro forma basis based upon its Parents' weighted average
shares outstanding prior to October 15, 1997 because the Company was a
subsidiary of Sunburst Hospitality Corporation.
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