Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q1 2024 Earnings Presentation
15 slides from Choice Hotels International's earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Earnings Results Presentation
FIRST QUARTER 2024 EARNINGS RESULTS PRESENTATION May 8, 2024 1
Slide 2: Forward-looking Statements
Forward-looking Statements Information set forth herein includes “forward-looking statements.” Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as “expect,” “estimate,” “believe,” “anticipate,” “should,” “will,” “f
Slide 3: Table of Contents
Table of Contents 1. First Quarter 2024 Results 2. Outlook 3. Appendix 3
Slide 4: First Quarter 2024 Results
1 First Quarter 2024 Results 4
Slide 5: First Quarter 2024 Performance
First Quarter 2024 Performance Growth Strategy Focused on Hotels that Generate Higher Royalties per Unit Effective Royalty Rate Growth Pipeline Unit Growth Global Overall >115,000 Record rooms +10% QoQ Openings +20% YoY +4 bps YoY Global Conversion +36%QoQ Franchise Agreements1 +7% YoY Domestic Over
Slide 6: First Quarter 2024 Financial Performance
First Quarter 2024 Financial Performance Revenues Profitability $203.0M $13.8M $124.3M $1.28 Adjusted Revenues1 Platform & procurement Adj. EBITDA3 Adj. diluted EPS services fees2 First Quarter Record First Quarter Record +16% YoY +9% YoY +17% YoY +14% YoY Shareholder Returns Balance Sheet ~$226M 1.
Slide 7: Outlook
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Slide 8: Full-Year 2024 Outlook
Full-Year 2024 Outlook Adj. EBITDA1 RevPAR Growth 2024 Revenue Sensitivities $580M to $600M flat to 2% vs. FY ’23 1% Increase in RevPAR = $4.9M in royalties +9% vs. FY ’23 at the midpoint Effective Royalty Rate Growth mid-single digits 1bps Increase in effective royalty rate = $1M in royalties vs. F
Slide 9: Double-digit profitability growth every year since 2017
The company delivered double-digit profitability growth every year since 20171, and is expected to continue to build on that momentum in 2024 PROFITABILITY (AS REPORTED ADJUSTED EBITDA) YoY Growth 16% 10% -35% 67% 19% 13% 9% $590M $541M $479M $404M $374M $341M $295M $241M 2017 2018 2019 2020 2021 20
Slide 10: Appendix
3 Appendix 10
Slide 11: Non-GAAP Financial Measurements and Other Definitions
Non-GAAP Financial Measurements and Other Definitions The company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP m
Slide 12: Non-GAAP Financial Measurements and Other Definitions
Non-GAAP Financial Measurements and Other Definitions Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels’ available capacity. Management uses occupan
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($ millions) Q1 2024* Q1 2023* FY 2023* Net income $31.0 $52.8 $258.5 Adjustments: Loss on impairment of unconsolidated joint ventures - - - (Gain) Loss on sale of business & assets, and impairments
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ADJUSTED EBITDA ($ millions) Q1 2024* Q1 2023* FY 2023* FY 2022* FY 2021* FY 2020* FY 2019* FY 2018* FY 2017* Net income $31.0 $52.8 $258.5 $332.2 $289.0 $75.4 $222.9 $216.4 $122.3 Income taxes 9.2 14.7 78.4 104.7 87.5 (22.4) 47.1 56.9 126.9 Interest expense 20.2
Slide 15: Reconciliation of Non-GAAP Measures for Full-Year 2024
Reconciliation of Non-GAAP Measures for Full-Year 2024 EBITDA AND ADJUSTED EBITDA (in thousands) Full Year (Lower Range) Full Year (Upper Range) Net Income $ 260,000 $ 274,000 Income tax expense 84,200 88,800 Interest expense 92,800 93,900 Interest income (6,100) (6,100) Other loss 300 300 Equity in
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