Central Parking Corporation Reports Fourth Quarter 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)--Nov. 27, 2001 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 fourth fiscal quarter ended September September: see month. 30, 2001 that were in line with the guidance offered by the Company last month. Earnings before property-related activities totaled $4.0 million, or $0.11 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 $7.0 million, or $0.19 per diluted share, in the year-earlier period. Revenues for the fourth quarter of 2001 declined slightly to $174.4 million versus $176.6 million in the year-earlier period. Earnings for the year ended September 30, 2001 totaled $30.8 million, or $0.86 per diluted share before property-related activities, versus earnings of $40.4 million, or $1.10 per diluted share, for fiscal 2000 before merger and integration-related expenses, property-related activities and an extraordinary item. Revenues for fiscal 2001 totaled $705.2 million versus $730.9 million in the year-earlier 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., Vice Chairman and Chief Executive Officer, said "The attacks of September 11 had a direct impact on our business 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. , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C., and to a lesser degree in other markets impacted by reduced travel such as hotels and airports. As noted in our October October: see month. 15 release, the impact of the September 11 attacks September 11 attacks Series of airline hijackings and suicide bombings against U.S. targets perpetrated by 19 militants associated with the Islamic extremist group al-Qaeda. reduced revenues by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5 million for the quarter. Without these attacks, the fourth quarter was on track to produce year over year earnings growth. Although revenues have rebounded, it is clear that the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. that has developed in the general economy will make fiscal 2002 a challenging year. We have the advantage that our core parking services business is relatively less exposed to short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. swings in the economy, but we do have exposure to changes in demand related to entertainment and discretionary travel. To adapt to the current environment, we have intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our actions to reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. while continuing to focus on growing revenues by implementing a company-wide effort to enhance our services and deliver more value to our customers. "Given the general economic slowdown and the lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. impact of the September 11 attacks on New York City, it will be difficult to achieve revenue or earnings growth during fiscal 2002, but we believe that our performance will improve as the year develops and the economy improves. However, given the current economic uncertainty, we are limiting our explicit guidance to the first quarter of fiscal 2002. We expect first quarter revenues will be $168 to $173 million and 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 of $0.22 to $0.28 before property-related activities, and after the 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 for goodwill accounting." The Company adopted SFAS 142 effective October 1, 2001, and as a result will no longer amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. goodwill. This change is expected to increase earnings per share (excluding impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges, if any) by approximately $0.08 per share each quarter. The Company earned $0.28 per share in the first quarter of fiscal 2001 excluding property-related activities or $0.36 per share after reflecting 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 on revenues of $177.3 million. Vareschi concluded, "We also expect to continue to generate a strong cash flow. Our EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for fiscal 2001 totaled approximately $120 million, allowing us to reduce our debt by $32.8 million, or 11%, for the year and to buy back $12.8 million of stock while continuing to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. in the business. Economic slowdowns such as we are experiencing now typically allow companies with strong financial positions and efficient operations to solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. their foundations for future growth. Our intent is to capitalize To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment. fully on this potential and emerge from this slowdown a much leaner lean 1 v. leaned, lean·ing, leans v.intr. 1. To bend or slant away from the vertical. 2. and more efficient organization. "We remain interested in adding other complementary operations such as our recently completed acquisitions of USA Parking and Universal Parking to augment aug·ment v. aug·ment·ed, aug·ment·ing, aug·ments v.tr. 1. To make (something already developed or well under way) greater, as in size, extent, or quantity: internal gains and believe that the Company's fundamental prospects remain strong both in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in our expanding international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ." 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 4,100 parking facilities containing approximately 1.5 million spaces at locations in 40 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 , 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. , 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. , 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. , 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). , 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. , 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. , 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. and 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 . 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
Financial Highlights
(In thousands)
(Unaudited)
Fourth Quarter Ended
-------------------------------
Sept. 30, Sept. 30,
2001(a) 2000
--------------- ---------------
Total revenues $ 174,415 $ 176,579
Total cost and expenses (163,146) (158,403)
Property-related
activities (4,678) (1,236)
--------------- ---------------
Operating earnings 6,591 16,940
Other income (expense),
net (1,639) (1,168)
Interest (expense), net (2,593) (5,346)
Income taxes (1,401) (4,399)
--------------- ---------------
Earnings before
extraordinary item
and change in
accounting principle $ 958 $ 6,027
=============== ===============
Earnings before
extraordinary item
and change in
accounting principle
per share
Basic $ 0.03 $ 0.17
Diluted $ 0.03 $ 0.16
Weighted average common shares:
Basic 35,757 36,204
Diluted 36,924 36,644
Pro forma earnings per share
Basic $ 0.11 $ 0.19
Diluted $ 0.11 $ 0.19
CENTRAL PARKING CORPORATION
Financial Highlights
(In thousands)
Fiscal Year Ended
-------------------------------
Sept. 30, Sept. 30,
2001(a) 2000(b)
--------------- ---------------
(Unaudited)
Total revenues $ 705,159 $ 739,929
Total cost and expenses (633,607) (649,020)
Merger/integration -- (3,747)
Property-related
activities (7,255) 935
--------------- -----------
Operating earnings 64,297 79,097
Other income (expense),
net (4,313) 914
Interest (expense), net (14,761) (20,100)
Income taxes (19,112) (23,277)
--------------- -----------
Earnings before
extraordinary item
and change in
accounting principle $ 26,111 $ 36,634
=============== ===========
Earnings before extraordinary item and change in accounting principle
per share:
Basic $ 0.73 $ 1.01
Diluted $ 0.73 $ 0.99
Weighted average common shares:
Basic 35,803 36,365
Diluted 36,015 36,851
Pro forma earnings per share:
Basic $ 0.87 $ 1.11
Diluted $ 0.86 $ 1.10
(a) Pro forma earnings per share exclude net gains (losses) on
property-related activities. Results for the fiscal year ended
September 30, 2001 exclude a change in accounting principle
loss of $258,000 after taxes.
(b) Pro forma earnings per share exclude merger and integrations
costs related to the merger in March 1999 of Allright
Holdings, Inc., and net gains from property-related
activities. Results for the fiscal year ended September 30,
2000 exclude an extraordinary loss of $195,000 after taxes.
CENTRAL PARKING CORPORATION
CONSOLIDATED BALANCE SHEETS
Amounts in thousands, except share data
September 30,
-------------------------------
2001 2000
--------------- --------------
(Unaudited)
ASSETS
Current assets:
Cash and cash
equivalents $ 41,849 $ 43,214
Management accounts
receivable 32,613 32,052
Accounts receivable
- other 16,149 14,995
Current portion of
notes receivable
(including amounts
due from related
parties of $4,304
in 2001 and $763
in 2000) 6,836 4,090
Prepaid rent 5,027 8,307
Prepaid other expenses 5,460 4,953
Deferred income taxes 259 612
--------------- ------------
Total current assets 108,193 108,223
Investments, at amortized
cost (fair value
$6,216 in 2001and
$5,775 in 2000) 6,035 5,778
Notes receivable, less
current portion 42,931 46,153
Property, equipment,
and leasehold
improvements, net 415,405 432,833
Contracts and lease
rights, net 88,094 96,607
Goodwill, net 250,630 264,756
Investment in and
advances to
partnerships and
joint ventures 30,704 30,306
Other assets 44,889 37,649
--------------- ------------
$ 986,881 $ 1,022,305
=============== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of
long-term debt and
capital lease
obligations $ 53,337 $ 55,760
Accounts payable 78,879 73,461
Accrued payroll and
related costs 12,616 14,287
Accrued expenses 12,381 12,236
Management accounts
payable 20,541 33,452
Income taxes payable 7,134 8,279
--------------- ------------
Total current liabilities 184,888 197,475
Long-term debt and
capital lease
obligations, less
current portion 223,135 253,535
Deferred rent 21,228 18,794
Deferred compensation 12,330 11,732
Deferred income taxes 15,757 24,801
Minority interest 31,121 31,108
Other liabilities 6,976 4,603
--------------- ------------
Total liabilities 495,435 542,048
Company-obligated
mandatorily redeemable
convertible securities
of subsidiary holding
solely parent debentures 110,000 110,000
Shareholders' equity
Common stock, $0.01
par value; 50,000,000
shares authorized,
35,791,550 and
36,330,275 shares
issued and outstanding
at September 30, 2001
and 2000, respectively 358 363
Additional paid-in capital 238,464 248,817
Accumulated other
comprehensive loss,
net (1,979) (144)
Retained earnings 145,308 121,612
Shares held in trust (705) --
Deferred compensation
on restricted stock -- (391)
--------------- ------------
Total shareholders' equity 381,446 370,257
--------------- ------------
$ 986,881 $ 1,022,305
=============== ============
CENTRAL PARKING CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
Amounts in thousands, except per share data
Year Ended September 30,
2001 2000 1999
----------- ------------- -------------
(Unaudited)
Revenues:
Parking $ 603,416 $ 628,666 $ 639,086
Management contract 101,743 102,263 91,386
----------- ------------- -------------
Total revenues 705,159 730,929 730,472
Costs and expenses:
Cost of parking 513,571 528,684 535,168
Cost of management
contracts 41,188 36,270 27,740
General and
administrative 66,807 71,946 77,312
Goodwill and compete
amortization 12,041 12,120 11,607
Merger costs -- 3,747 40,970
----------- ------------- -------------
Total costs and
expenses 633,607 652,767 692,797
Property-related gains
(losses), net (7,255) 935 3,006
----------- ------------- -------------
Operating earnings 64,297 79,097 40,681
Other income (expenses):
Interest income 5,807 6,904 6,639
Interest expense (20,568) (27,004) (26,951)
Dividends on company-
obligated mandatorily
redeemable
convertible
securities of a
subsidiary trust (5,886) (6,012) (5,926)
Minority interest (3,502) (3,334) (2,612)
Equity in partnership
and joint venture
earnings 5,075 10,260 5,233
----------- ------------- -------------
Earnings before income
taxes, extraordinary
item and cumulative
effect of accounting
change 45,223 59,911 17,064
Income tax expense:
Current 26,462 25,843 15,423
Deferred (7,350) (2,566) (3,043)
----------- ------------- -------------
Total income taxes 19,112 23,277 12,380
----------- ------------- -------------
Earnings before
extraordinary item and
cumulative effect of
accounting change 26,111 36,634 4,684
Extraordinary item, net
of tax -- (195) (1,002)
Cumulative effect of
accounting change,
net of tax (258) -- --
----------- ------------- -------------
Net earnings $ 25,853 $ 36,439 $ 3,682
=========== ============= =============
Basic earnings per share:
Earnings before
extraordinary item
and cumulative
effect of accounting
change $ 0.73 $ 1.01 $ 0.13
Extraordinary item,
net of tax $ -- $ (0.01) $ (0.03)
Cumulative effect of
accounting change,
net of tax $ (0.01) $ -- $ --
Net earnings $ 0.72 $ 1.00 $ 0.10
Diluted earnings per share:
Earnings before
extraordinary item
and cumulative
effect of accounting
change $ 0.73 $ 0.99 $ 0.13
Extraordinary item,
net of tax $ -- $ -- $ (0.03)
Cumulative effect of
accounting change,
net of tax $ (0.01) $ -- $ --
Net earnings $ 0.72 $ 0.99 $ 0.10
CENTRAL PARKING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Amounts in thousands
Year Ended September 30,
----------------------------------------------
2001 2000 1999
-------------- --------------- ---------------
(Unaudited)
Cash flows from operating activities:
Net earnings $ 25,853 $ 36,439 $ 3,682
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and
amortization of
property 21,706 23,192 22,872
Amortization of
goodwill and non-
compete agreements 12,041 12,120 11,607
Amortization of
contract and lease
rights, straight-
line rent, deferred
financing fees and
other 14,000 10,923 8,652
Equity in partnership
and joint venture
earnings (5,075) (10,260) (5,233)
Distributions from
partnerships and
joint ventures 3,300 10,039 5,149
Net (gains) losses on
property related
activities 7,255 (935) (3,006)
Deferred income taxes (7,350) (2,566) (3,043)
Minority interest 3,502 3,334 2,612
Charge for Edison
minority interest
write-up -- -- 7,000
Tax benefit
nonqualifying stock
options -- 850 635
Changes in operating assets and liabilities, excluding effects of
acquisitions:
Management accounts
receivable (561) 1,236 (13,441)
Accounts receivable
- other (624) 4,193 (5,432)
Prepaid rent 3,280 5,923 1,708
Prepaid expenses
- other (507) 2,485 (1,673)
Prepaid and refundable
income taxes -- 5,374 (4,108)
Other assets (9,042) 2,728 (10,864)
Accounts payable,
accrued expenses and
deferred compensation (6,359) (8,810) 7,653
Management accounts
payable (12,911) 36 6,805
Income taxes payable (1,145) 4,108 3,226
-------------- ------------- --------------
Net cash provided by
operating activities 47,363 100,409 34,801
-------------- ------------- --------------
Cash flows from investing activities:
Proceeds from disposition
of property and
equipment 30,800 28,881 25,252
Investments in
(repayments of) notes
receivable, net 476 10,130 (12,377)
Purchase of property,
equipment and
leasehold improvements (29,288) (52,242) (38,000)
Purchase of contract and
lease rights (2,988) (980) (43,338)
Investments in and
advances to
partnerships, joint
ventures and
unconsolidated
subsidiaries 1,164 (2,224) (219)
Purchase of remaining
interest in
unconsolidated
subsidiary -- -- (20,789)
Acquisitions of
companies, net of cash
acquired -- (257) (785)
Proceeds from maturities
and calls of investments 1,225 537 712
Purchase of investments (1,517) (827) (1,113)
-------------- ------------- --------------
Net cash used by investing
activities (128) (16,982) (90,657)
-------------- ------------- --------------
CENTRAL PARKING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Year Ended September 30,
----------------------------------------------
2001 2000 1999
-------------- --------------- --------------
(Unaudited)
Cash flows from financing activities:
Dividends paid (2,163) (2,197) (1,986)
Net borrowings
(repayments) under
revolving credit
agreement 22,488 (60,914) 98,677
Proceeds from issuance
of notes payable, net
of issuance costs -- 13,300 263,615
Payment to minority
interest partner (3,114) -- (3,338)
Principal repayments on
notes payable (55,629) (28,718) (302,413)
Repurchase of common stock (12,848) (14,623) --
Proceeds from issuance
of common stock and
exercise of stock
options 2,490 2,732 2,813
-------------- ------------- --------------
Net cash provided (used)
by financing activities (48,776) (93,758) 58,603
-------------- ------------- --------------
Foreign currency
translation 176 (124) 178
-------------- ------------- --------------
Net increase (decrease)
in cash and cash
equivalents (1,365) (10,455) 2,925
Cash and cash equivalents
at beginning of period 43,214 53,669 39,495
Cash and cash equivalents
derived from Allright
merger -- -- 11,249
-------------- ------------- --------------
Cash and cash equivalents
at end of period $ 41,849 $ 43,214 $ 53,669
============== ============= ==============
Non-cash transactions:
Purchase of property
and equipment in
exchange for
liabilities $ -- $ -- $ --
Issuance of stock in
acquisitions $ -- $ -- $ --
Issuance of
restricted stock $ -- $ 48 $ 74
Purchase of lease
rights and contract
rights with notes
payable $ -- $ 14,250 $ --
Effects of acquisitions:
Estimated fair value
of assets acquired $ -- $ 365 $ 285
Purchase price in
excess of the net
assets acquired
(goodwill) -- 355 500
Estimated fair values
of liabilities
assumed -- (412) --
Common stock issued -- -- --
-------------- ------------- ---------------
Cash paid -- 308 785
Less cash acquired -- (51) --
-------------- ------------- ---------------
Net cash paid for
acquisitions $ -- $ 257 $ 785
============== ============= ==============
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