Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q3 2024 Earnings Presentation
14 slides from Choice Hotels International's earnings presentation, Nov 4, 2024
Slide 1: Third Quarter 2024 Earnings Results Presentation
THIRD QUARTER 2024 EARNINGS RESULTS PRESENTATION Cambria Hotel, Denver Downtown RiNo, CO November 4, 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,” “
Slide 3: Table of Contents
Table of Contents 1. Third Quarter 2024 Results 2. Outlook 3. Appendix 3 500th Choice Extended Stay Hotel Opening: Everhome Suites, Glendale, AZ
Slide 4: Third Quarter 2024 Results
1 Third Quarter 2024 Results 4 4 Hotel Faranda Rias Altas, Ascend Hotel Collection, Oleiros, Spain
Slide 5: Third Quarter 2024 Performance
Third Quarter 2024 Performance Growth Strategy Focused on Hotels that Generate Higher Royalties per Unit Effective Royalty Rate Growth Pipeline Unit Growth Global Overall >110,000 Record rooms +11 % YoY Global Openings +75% YoY +6 bps YoY +1.8% Global Global Conversion +54 % rooms YoY Net Rooms Grow
Slide 6: Third Quarter 2024 Financial Performance
Third Quarter 2024 Financial Performance Revenues Profitability $256.1M $177.6M $2.23 Adjusted Revenues1 Adj. EBITDA2 Adj. diluted EPS Record Record +17% YoY +14% YoY +23% YoY Shareholder Returns Balance Sheet >$395M 2.9M >6% ~$676M In cash dividends and shares of shares Available liquidity share re
Slide 7: Outlook
3 Outlook Everhome Suites Atlanta Newnan, GA 7
Slide 8: Revised Full-Year 2024 Outlook
Revised Full-Year 2024 Outlook Adj. Diluted EPS1 RevPAR Growth 2024 Revenue Sensitivities Raised range Raised range $6.70 to $6.87 -2% to -1% +11% at the midpoint vs. FY ’23 vs. FY ’23 1% Increase in RevPAR = $4.8M in royalties Adj. Net Income2 Effective Royalty Rate Growth Reaffirmed Raised range $
Slide 9: Appendix
4 Appendix 9 9 Cambria Hotel Boston Sommerville, MA
Slide 10: 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 11: 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 12: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($ millions) Q3 2024* Q3 2023* FY 2023* Net income $105.7 $92.0 $258.5 Adjustments: Impairments and gain on sale of business & assets, and impairments, net - - 2.8 (Gain) Loss on extinguishment of d
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ADJUSTED EBITDA ($ millions) Q3 2024* Q3 2023* FY 2023* FY 2022* FY 2021* FY 2020* FY 2019* FY 2018* FY 2017* Net income $105.7 $92.0 $258.5 $332.2 $289.0 $75.4 $222.9 $216.4 $122.3 Income tax expense 31.4 29.2 78.4 104.7 87.5 (22.4) 47.1 56.9 126.9 Interest expen
Slide 14: 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 $ 276,000 $ 284,000 Income tax expense 86,700 88,500 Interest expense 88,000 88,000 Interest income (8,400) (8,400) Other gain (500) (500) Equit
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