Central Parking Corporation Reports Fiscal Third Quarter 2002 Earnings.Business Editors NASHVILLE Nashville, city (1990 pop. 487,969), state capital, coextensive with Davidson co., central Tenn., on the Cumberland River, in a fertile farm area; inc. as a city 1806, merged with Davidson co. 1963. , Tenn.--(BUSINESS WIRE)--July 25, 2002 Central Parking Corporation (NYSE NYSE See: New York Stock Exchange :CPC (1) (Central Processing Complex) An IBM mainframe that has two or more central processors (CPs) that share memory. It is the collection of processors, memory and I/O subsystems manufactured with a single serial number, typically all contained in one cabinet. ) today announced earnings for the third fiscal quarter ended June June: see month. 30, 2002 before property-related activities and nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items (pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma ) of $11.0 million, or $0.30 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $11.3 million, or $0.32 per diluted share, in the year-earlier period. For comparability purposes, prior year pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. have been increased by $0.08 per share to reflect the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of goodwill amortization relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's October October: see month. 1, 2001 adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 142. Revenues (excluding reimbursed management costs) for the third quarter of fiscal 2002 increased to $183.0 million compared to $179.1 million in the year-earlier period. During the fiscal third quarter of 2002, the Company became subject to and adopted a new accounting standard (EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation 01-14), which requires the recognition of both revenues and expenses in equal amounts for costs directly reimbursed from its management clients. This accounting change has no impact on operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before or net earnings. Historically, expenses directly reimbursed under management agreements have been netted against the reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. received. As required by this new accounting standard, these items have been reclassified in all prior periods to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the new presentation. For the June quarter of 2002, the impact is an increase of $97.4 million in both revenues and expenses. Additionally, the Company adopted in the fiscal third quarter of 2002 another new accounting standard (SFAS 145), which requires the gains from the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of the trust issued convertible securities to be repositioned in the Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Earnings. These gains are now reported as gains before income taxes whereas previously they were shown as an extraordinary item net of taxes. This change has no impact on net earnings and as required by this new accounting standard, these gains have been reclassified in all prior periods to conform to the new presentation. Reported earnings (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) for the quarter ended June 30, 2002 were $0.28 per diluted share including a loss of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.04 per share from property-related losses and a gain of approximately $0.02 per share related to the repurchase of approximately 139,000 shares of trust issued convertible securities. Reported earnings (GAAP) per diluted share were $0.19 in the prior year period. William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack J. Vareschi, Jr., Chief Executive Officer, said, "Revenues and earnings for the third quarter of fiscal 2002 were consistent with our expectations. Despite a difficult economic environment, we are encouraged that this quarter's earnings approached last year's levels and that cash provided by operations significantly exceeded prior year performance. At $183.0 million, revenues were 2% higher than last year. The increase was driven by previously announced acquisitions and a positive new/lost business ratio partially offset by a modest decline in same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of . The decline in same store sales is principally attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower monthly parking revenues in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Seattle Seattle (sēăt`əl), city (1990 pop. 516,259), seat of King co., W Wash., built on seven hills, between Elliott Bay of Puget Sound and Lake Washington; inc. 1869. and other areas reflecting higher levels of unemployment. Pricing was essentially flat with prior year levels. Vareschi continued, "Our fourth quarter revenue and earnings projections are based on the assumption that the economic recovery remains somewhat choppy chop·py 1 adj. chop·pi·er, chop·pi·est Having many small waves; rough: choppy seas. [From chop1. over the next several months. As a result, we expect fourth quarter revenues to be approximately $178 to $182 million (excluding reimbursed management costs) compared to $174 million for the same period last year. This level of revenue should produce fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter of $0.20 to $0.24 per share before property-related activities and nonrecurring items (pro forma) compared to approximately $0.19 per share (pro forma) in the same period last year", said Vareschi. For comparability purposes, earnings for the fourth fiscal quarter of last year have been adjusted upward by approximately $0.08 per share to reflect the discontinuation of goodwill amortization. Vareschi concluded, "We are continuing to gain new business by focusing on the fundamentals embodied em·bod·y tr.v. em·bod·ied, em·bod·y·ing, em·bod·ies 1. To give a bodily form to; incarnate. 2. To represent in bodily or material form: within our "Operational Excellence" initiatives. We have established firm expectations for performance internally and believe that we are poised to deliver the kind of performance our clients, employees and shareholders expect." Central Parking Corporation, headquartered in Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. , is a leading provider of parking and transportation management services. The Company operates approximately 3,900 parking facilities containing approximately 1.6 million spaces at locations in 39 states, the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , the United Kingdom, the Republic of Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. , Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, , Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , Greece Greece, Gr. Hellas or Ellas, republic (2005 est. pop. 10,668,000), 50,944 sq mi (131,945 sq km), SE Europe. It occupies the southernmost part of the Balkan Peninsula and borders on the Ionian Sea in the west, on the Mediterranean Sea in the south, on , Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. , Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. , Colombia Colombia (kəlŭm`bēə, Span. kōlōm`byä), officially Republic of Colombia, republic (2005 est. pop. 42,954,000), 439,735 sq mi (1,138,914 sq km), NW South America. Bogotá is the capital and largest city. , Peru and Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. . This press release contains projections and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurance can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission.
Central Parking Corporation and Subsidiaries
Financial Highlights
(Unaudited)
Amounts in thousands, except per share data
Three Months Ended Nine Months Ended
June 30, June 30,
2002 2001 2002 2001
---------- ----------- ----------- -----------
Total revenues (a) $ 182,965 $ 179,145 $ 539,050 $ 530,744
Total cost and
expenses (a)(b) (163,173) (157,246) (482,556) (461,964)
Interest expense, net (1,865) (3,356) (5,374) (12,168)
Other (expenses) income,
net 178 38 (571) (263)
Income taxes (c) (5,777) (6,310) (16,484) (18,826)
Minority interest, net
of tax (1,374) (947) (3,652) (2,411)
--------- --------- --------- ---------
Earnings (pro forma) 10,954 11,324 30,413 35,112
Property-related gains
(losses), net of tax (1,379) (1,885) 2,718 (1,852)
Gain on repurchase of
mandatorily redeemable
convertible securities
of a subsidiary trust,
net of tax 528 -- 5,547 --
Amortization of goodwill,
net of tax -- (2,702) -- (8,107)
Cumulative effect of
account change, net
of tax -- -- -- (258)
--------- --------- --------- ---------
Net earnings (GAAP) $ 10,103 $ 6,737 $ 38,678 $ 24,895
========= ========= ========= =========
Pro forma earnings
Basic $ 0.30 $ 0.32 $ 0.85 $ 0.98
Diluted $ 0.30 $ 0.32 $ 0.84 $ 0.97
Net earnings per share
(GAAP)
Basic $ 0.28 $ 0.19 $ 1.08 $ 0.70
Diluted $ 0.28 $ 0.19 $ 1.07 $ 0.69
Weighted average common shares:
Basic 35,923 35,740 35,817 35,818
Diluted 36,587 35,900 36,190 36,046
(a) Excludes revenues and expenses for amounts directly reimbursed by
management clients.
(b) Excludes amortization of goodwill of $2,832 and $8,497 for the
three and nine months ended June 30, 2001, respectively. The
Company adopted SFAS 142, "Goodwill and Intangible Assets," as of
October 1, 2001, and therefore no longer amortizes goodwill.
(c) Income tax expense for the three and nine months ended June 30,
2002 excludes income tax benefit (expense) on net property-related
gains and losses of $919 and ($2,017), respectively, and income
tax expense on gain on repurchase of mandatorily redeemable
convertible securities of $353 and $3,698, respectively. Income
tax expense for the three and nine months ended June 30, 2001
excludes income tax benefit on net property-related losses of
$1,173 and $725, respectively, and income tax benefit on goodwill
amortization of $130 and $390, respectively.
Central Parking Corporation and Subsidiaries
Consolidated Statements of Earnings
(Unaudited)
Amounts in thousands, except per share data
Three Months Ended June 30,
2002 2001
----------- -----------
Revenues:
Parking $ 151,664 $ 154,260
Management contract and other 31,301 24,885
--------- ---------
182,965 179,145
Reimbursement of management contract expenses 97,370 90,986
--------- ---------
Total revenues 280,335 270,131
Costs and expenses:
Cost of parking 133,452 128,485
Cost of management contracts 12,403 11,193
General and administrative 17,224 17,399
Goodwill and non-compete amortization 94 3,001
--------- ---------
163,173 160,078
Reimbursed management contract expenses 97,370 90,986
--------- ---------
Total costs and expenses 260,543 251,064
Property-related losses, net (2,298) (3,058)
--------- ---------
Operating earnings 17,494 16,009
Other income (expenses):
Interest income 1,277 1,362
Interest expense (3,142) (4,718)
Dividends on company-obligated mandatorily
redeemable convertible securities (1,093) (1,472)
Gain on repurchase of company-obligated
mandatorily redeemable convertible
securities 881 --
Equity in partnership and joint venture
earnings 1,271 1,510
--------- ---------
Earnings before income taxes and minority
interest 16,688 12,691
Income tax expense (5,211) (5,007)
Minority interest (1,374) (947)
--------- ---------
Net earnings $ 10,103 $ 6,737
========= =========
Basic earnings per share:
Net earnings $ 0.28 $ 0.19
========= =========
Diluted earnings per share:
Net earnings $ 0.28 $ 0.19
Central Parking Corporation and Subsidiaries
Consolidated Statements of Earnings
(Unaudited)
Amounts in thousands, except per share data
Nine months ended June 30,
2002 2001
----------- -----------
Revenues:
Parking $ 448,804 $ 454,785
Management contract and other 90,246 75,959
--------- ---------
539,050 530,744
Reimbursement of management contract expenses 289,705 273,477
--------- ---------
Total revenues 828,755 804,221
Costs and expenses:
Cost of parking 391,932 379,180
Cost of management contracts 37,743 31,192
General and administrative 52,571 51,086
Goodwill and non-compete amortization 310 9,003
--------- ---------
482,556 470,461
Reimbursed management contract expenses 289,705 273,477
--------- ---------
Total costs and expenses 772,261 743,938
Property-related gains (losses), net 4,735 (2,577)
--------- ---------
Operating earnings 61,229 57,706
Other income (expenses):
Interest income 4,087 4,341
Interest expense (9,461) (16,509)
Dividends on company-obligated mandatorily
redeemable convertible securities (3,823) (4,415)
Gain on repurchase of company-obligated
mandatorily redeemable convertible
securities 9,245 --
Equity in partnership and joint venture
earnings 3,252 4,152
--------- ---------
Earnings before income taxes, minority
interest, and cumulative effect of
accounting change 64,529 45,275
Income tax expense (22,199) (17,711)
Minority interest (3,652) (2,411)
--------- ---------
Earnings before cumulative effect of
accounting change 38,678 25,153
Cumulative effect of accounting change,
net of tax -- (258)
--------- ---------
Net earnings $ 38,678 $ 24,895
========= =========
Basic earnings per share:
Earnings before cumulative effect of
accounting change $ 1.08 $ 0.70
Cumulative effect of accounting change,
net of tax -- --
--------- ---------
Net earnings $ 1.08 $ 0.70
========= =========
Diluted earnings per share:
Earnings before cumulative effect of
accounting change $ 1.07 $ 0.70
Cumulative effect of accounting change,
net of tax -- (0.01)
--------- ---------
Net earnings $ 1.07 $ 0.69
========= =========
Central Parking Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
Amounts in thousands
June 30, Sept. 30,
2002 2001
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 34,571 $ 41,849
Management accounts receivable 38,496 32,613
Accounts receivable - other 14,099 16,149
Current portion of notes receivable 8,433 6,836
Prepaid expenses 11,214 6,939
Deferred income taxes 259 259
----------- -----------
Total current assets 107,072 104,645
Notes receivable, less current portion 42,887 42,931
Property, equipment and leasehold
improvements, net 426,607 415,405
Contract and lease rights, net 112,438 88,094
Goodwill, net 251,533 250,630
Investment in and advances to partnerships
and joint ventures 15,375 30,704
Other assets 49,344 54,472
----------- -----------
Total Assets $ 1,005,256 $ 986,881
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 53,229 $ 53,337
Accounts payable 79,566 77,887
Accrued expenses 29,722 24,997
Management accounts payable 23,319 20,541
Income taxes payable 14,396 7,134
----------- -----------
Total current liabilities 200,232 183,896
Long-term debt and capital lease obligations,
less current portion 195,269 208,885
Deferred rent 30,385 22,310
Deferred income taxes 14,944 15,757
Minority interest 30,970 31,121
Other liabilities 34,030 33,466
----------- -----------
Total liabilities 505,830 495,435
----------- -----------
Company-obligated mandatorily redeemable
securities of subsidiary holding solely
parent debentures 78,085 110,000
Shareholders' equity:
Common stock 360 358
Additional paid-in capital 241,600 238,464
Accumulated other comprehensive loss, net (2,070) (1,979)
Retained earnings 182,373 145,308
Others shareholders' equity (922) (705)
----------- -----------
Total shareholders' equity 421,341 381,446
----------- -----------
Total Liabilities and Shareholders'
Equity $ 1,005,256 $ 986,881
=========== ===========
Central Parking Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Amounts in thousands
Nine Months Ended June 30,
2002 2001
----------- -----------
Cash flows from operating activities:
Net earnings $ 38,678 $ 24,895
Depreciation and amortization 25,759 35,749
Equity in partnership and joint venture
earnings (3,252) (4,152)
Distributions from partnerships and joint
ventures 3,353 2,649
Property-related (gains) losses, net (4,735) 2,577
Gain on repurchase of mandatorily redeemable
convertible securities (9,245) --
Deferred income taxes (963) (537)
Minority interest 3,652 2,411
Changes in operating assets and liabilities
(net of acquisitions):
Management accounts receivable (3,799) 1,208
Accounts receivable - other 2,616 (1,461)
Prepaid expenses (4,275) 526
Other assets 1,614 (7,102)
Accounts payable, accrued expenses and
other liabilities 5,239 (12,461)
Management accounts payable 2,340 (3,943)
Deferred rent 8,075 (1,221)
Income taxes payable 7,236 (6,864)
-------- ------------
Net cash provided by operating
activities 72,293 32,274
-------- ------------
Cash flows from investing activities:
Proceeds from disposition of property and
equipment 15,716 21,325
Proceeds from sale of investment in
partnership 18,399 --
Purchase of property, equipment and
leasehold improvements (19,777) (22,562)
Purchase of contract and lease rights (18,801) (2,041)
Acquisitions, net of cash acquired (17,662) --
Other investing activities (483) 2,430
-------- ------------
Net cash used by investing activities (22,608) (848)
-------- ------------
Cash flows from financing activities:
Dividends paid (1,613) (1,625)
Net borrowings under revolving credit
agreement 9,500 16,100
Principal repayments on notes payable and
capital leases (41,512) (42,478)
Payments to minority interest partners (3,972) (3,114)
Repurchase of common stock (488) (10,863)
Repurchase of mandatorily redeemable
securities (21,823) --
Issuance of common stock and exercise of
stock options 3,261 2,077
-------- ------------
Net cash used by financing activities (56,647) (39,903)
-------- ------------
Foreign currency translation (316) 176
-------- ------------
Net decrease in cash and cash equivalents (7,278) (8,301)
Cash and cash equivalents at beginning of period 41,849 43,214
-------- ------------
Cash and cash equivalents at end of period $ 34,571 $ 34,913
======== ============
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