SILVER SPRING, MD— Choice Hotels International announced it will report a fourth-quarter loss as a result of $26.9 million in charges for restructuring and investment in Friendly Hotels Plc. Excluding the charges, Choice said it anticipates net income of $12.6 million, or 29 cents per share, for the fourth quarter. For the year ended Dec. 31, 2001, the company said net income will be $55.6 million, or $1.25 per share. Choice said for the fourth quarter, it will record charges related to its investment in Friendly Hotels of approximately $21 million after tax, or a negative 48 cents per share, in addition to a previously announced restructuring charge of $5.9 million pre-tax, or negative 9 cents per share. The company said the non-cash charge related to companys investment in Friendly Hotels is necessary to adjust the investment to its estimated value. Choice said the impact of these charges will reduce fourth-quarter net income by $24.5 million and diluted earnings by 57 cents per share. This will result in a net loss for the fourth quarter of $11.9 million, or 28 cents per diluted share. For the year ended Dec. 31, 2001, after including the impact of these charges, Choice will report net income of $21.6 million or 48 cents per diluted share. The companys hotel brands include Clarion, Comfort, Comfort Suites, Econo Lodge, MainStay Suites, Quality, Rodeway Inn and Sleep Inn.
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