Choice Hotels International, Inc. · NYSE:CHH
Choice Hotels International — Q2 2024 Earnings Presentation
13 slides from Choice Hotels International's earnings presentation, Aug 8, 2024
Slide 1: Second Quarter 2024 Earnings Results Presentation
SECOND QUARTER 2024 EARNINGS RESULTS PRESENTATION Cambria Hotel, Rehoboth Beach, DE August 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. Second Quarter 2024 Results 2. Outlook 3. Appendix 3 Comfort Inn & Suites Gallatin, Nashville Metro, TN
Slide 4: Second Quarter 2024 Results
1 Clarion Hotel, Paris CDG Airport, FR Second Quarter Clarion Hotel, Paris CDG Airport, FR 2024 Results 4 Clarion Hotel, Paris CDG Airport, FR
Slide 5: Second Quarter 2024 Performance
Second 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 +22% YoY Global Openings +20% YoY +5 bps YoY Global Conversion +25,800 rooms YoY Domestic Franchise +8% Ag
Slide 6: Second Quarter 2024 Financial Performance
Second Quarter 2024 Financial Performance Revenues Profitability $258.9M $161.7M $1.84 Adjusted Revenues 1 Adj. EBITDA2 Adj. diluted EPS Q2 Record Q2 Record +14% YoY +6% YoY +5% YoY Shareholder Returns Balance Sheet $347M 2.5M >5% $600M ~$530M In cash dividends and shares of shares 10-year senior un
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 $6.40 to $6.65 -1.5 to -3.5% vs. FY ’23 1% Increase in RevPAR = $4.7M in royalties +7% at the midpoint Effective Royalty Rate Growth vs. FY ’23 mid-single Adj. EBITDA 2 digits 1bps Increase in effe
Slide 9: Appendix
4 Appendix 9 Cambria Hotel Boston Sommerville, MA
Slide 10: Non-GAAP Financial Measurements and Other Definitions
Non-GAAP Financial Measurements and Other Definitions The company evaluates its operations utilizing the performance metrics of EBITDA, adjusted EBITDA, adjusted net income, and adjusted EPS, which are all non-GAAP financial measurements. These measures, which are reconciled to the comparable GAAP m
Slide 11: Non-GAAP Financial Measurements and Other Definitions
Non-GAAP Financial Measurements and Other Definitions Occupancy: Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel for a given period. Occupancy measures the utilization of the hotels’ available capacity. Management uses occupan
Slide 12: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ADJUSTED NET INCOME AND ADJUSTED DILUTED EARNINGS PER SHARE (EPS) ($ millions) Q2 2024* Q2 2023* FY 2023* Net income $87.1 $84.7 $258.5 Adjustments: Loss on sale of business & assets, and impairments, net - - 2.8 Gain on extinguishment of debt - - (3.4) Loss on in
Slide 13: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures ADJUSTED EBITDA ($ millions) Q2 2024* Q2 2023* FY 2023* FY 2022* FY 2021* FY 2020* FY 2019* FY 2018* FY 2017* Net income $87.1 $84.7 $258.5 $332.2 $289.0 $75.4 $222.9 $216.4 $122.3 Income tax expense 29.4 27.8 78.4 104.7 87.5 (22.4) 47.1 56.9 126.9 Interest expens
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