Central Parking Reports Improved Third Quarter Results.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. -- 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 that earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended June June: see month. 30, 2004, increased to $6.6 million, or $0.18 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 a loss of $4.9 million, or $0.13 per diluted share in the third fiscal quarter of 2003. Net earnings for the third quarter of fiscal 2004 were $6.0 million, or $0.16 per diluted share compared with a net loss of $5.1 million, or $0.14 per diluted share for the third quarter of the previous fiscal year. For the third quarter of 2004, total revenues increased 3.4% to $295.2 million, while revenues excluding reimbursed management expenses increased slightly to $181.7 million compared with $180.9 million in the year-earlier period. Earnings from continuing operations for the nine months ended June 30, 2004 were $19.4 million, or $0.53 per diluted share compared with a loss of $6.8 million, or $0.19 per diluted share. Net earnings for the first nine months of 2004 were $17.9 million, or $0.49 per diluted share compared with a loss of $7.4 million, or $0.21 per diluted share. Total revenues increased 4.7% to $882.5 million, while revenues excluding reimbursed management expenses increased 1.6% to $542.4 million. During the third quarter, the Company continued its program of opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. property sales with proceeds totaling $11.5 million. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales through June 30, 2004 totaled more than $41 million. The pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta property related gains included in results from continued operations was $1.2 million, or $0.02 per share for the third quarter and $5.7 million, or $0.09 per share for the first nine months of 2004. "The increase in earnings from continuing operations is due primarily to lower expenses, particularly payroll and rent expense, and property-related gains," said Monroe Monroe. 1 Industrial city (1990 pop. 54,909), seat of Ouachita parish, SE La., on the Ouachita River; founded c.1785, inc. as a city 1900. The center of the great Monroe Natural Gas Field (discovered 1915), it has important chemical plants, as well as J. Carell, Jr., Chairman and Chief Executive Officer. "Parking revenues declined slightly in the third quarter but management contract revenues increased 9.5%. Margins improved in both segments as both the cost of parking and the cost of management contracts were lower than the comparable period of the prior fiscal year." Mr. Carell continued, "As we have done all year, we continued to improve operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and reduce debt. Lower capital expenditures, improved cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses and successful property sales allowed us to reduce debt by $16 million during the third quarter, bringing the total debt reduction for the first nine months of 2004 to $78 million. "Revenues for the third quarter reflect mixed results from the economic recovery. Some markets, such as 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. , have shown improvement, while other large markets have not. Nevertheless, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that demand for our parking services will gradually increase as office building occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) improve in the central business districts in our major markets. As a result, we continue to expect that earnings from continuing operations for the fiscal year ending September September: see month. 30, 2004, excluding property-related gains, will be in the range of $0.55 to $0.65 per share," Carell concluded. A conference call regarding this release is scheduled for Thursday Thursday: see week. , July July: see month. 29, 2004, beginning at 10:00 a.m. (ET). Investors and other interested parties may listen to the teleconference by accessing the online, real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. webcast and broadcast of the call at www.parking.com or www.fulldisclosure.com. 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 global provider of parking and transportation management services. The Company operates approximately 3,600 parking facilities containing approximately 1.6 million spaces at locations in 38 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. , 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. , Chile, Peru, 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. , 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. , 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. and Greece. This press release contains historical and forward-looking information. The words "expect," "continue to expect," "remain optimistic," "should," "believe," "anticipate," "project," "plan," "estimate," "objective," "outlook," "assumptions," "guidance," "forecast," "goal," "intend," "will likely result," or "will continue" and similar expressions identify 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. . The forward-looking statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in the forward-looking statements. The factors that may result in actual results differing from such forward-looking information include, but are not limited to: the Company's ability to achieve the goals described in this release and other communications, including but not limited to, continued efforts to maintain reduced operating costs operating costs npl → gastos mpl operacionales and further reductions in the Company's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , as well as continued improvement 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 , which is dependent on improvements in general economic conditions and office occupancy rates; the loss or renewal on less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms, of management contracts and leases; the timing of pre-opening, start-up Start-up The earliest stage of a new business venture. and break-in costs of parking facilities; the Company's ability to cover the fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). of its leased and owned facilities and its overall ability to maintain adequate liquidity through its cash resources and credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities ; the Company's ability to comply with the terms of the Company's credit facilities (or obtain waivers for non-compliance); interest rate fluctuations; acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. or terrorism; temporary changes in demand due to sports and other special events and weather patterns; higher premium and claims costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's insurance programs, including medical, liability and workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. ; the Company's ability to renew and obtain performance and surety bonds surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. on favorable terms; and the impact of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , including but not limited to, the securities class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax pending against the Company; and increased regulation or taxation of parking operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements contained herein to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or occurring after the date of this release or to reflect the occurrence of unanticipated events. We have provided additional information in our Annual Report on Form10-K for our fiscal year ended September 30, 2003 filed with the Securities and Exchange Commission, which readers are encouraged to review, concerning other factors that could cause actual results to differ materially from those indicated in the forward-looking statements.
Central Parking Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Amounts in thousands, except
per share data
QTD ended June 30, YTD ended June 30,
2004 2003 2004 2003
--------- --------- --------- ---------
Revenues:
Parking $148,502 $150,612 $445,543 $444,059
Management contracts 33,145 30,273 96,827 89,599
--------- --------- --------- ---------
181,647 180,885 542,370 533,658
Reimbursement of management
contract expenses 113,590 104,636 340,149 309,338
--------- --------- --------- ---------
Total revenues 295,237 285,521 882,519 842,996
Costs and expenses:
Cost of parking 134,559 140,348 401,221 411,940
Cost of management contracts 13,827 16,516 42,749 48,531
General and administrative 18,026 24,778 55,005 66,175
--------- --------- --------- ---------
166,412 181,642 498,975 526,646
Reimbursed management
contract expenses 113,590 104,636 340,149 309,338
--------- --------- --------- ---------
Total costs and expenses 280,002 286,278 839,124 835,984
Property-related gains
(losses), net 1,170 (4,108) 5,705 (7,287)
--------- --------- --------- ---------
Operating earnings (losses) 16,405 (4,865) 49,100 (275)
Other income (expenses):
Interest income 1,217 1,139 3,643 3,489
Interest expense (3,793) (4,841) (12,134) (13,389)
Interest expense - subordinated
debentures (1,045) (1,045) (3,134) (3,134)
Gain on sale of non-operating
assets - 38 - 3,279
Equity in partnership and joint
venture earnings (402) 293 (2,389) 1,824
--------- --------- --------- ---------
Earnings (loss) from continuing
operations before minority
interest and income taxes 12,382 (9,281) 35,086 (8,206)
Minority interest, net of tax (778) (884) (2,435) (3,244)
--------- --------- --------- ---------
Earnings (loss) from continuing
operations before income taxes 11,604 (10,165) 32,651 (11,450)
Income tax (expense) benefit (5,059) 5,221 (13,265) 4,615
--------- --------- --------- ---------
Earnings (loss) from
continuing operations 6,545 (4,944) 19,386 (6,835)
--------- --------- --------- ---------
Discontinued operations,
net of tax (577) (184) (1,488) (578)
--------- --------- --------- ---------
Net earnings (loss) $5,968 $(5,128) $17,898 $(7,413)
========= ========= ========= =========
Basic earnings (loss) per share:
Earnings (loss) from continuing
operations $0.18 $(0.13) $0.53 $(0.19)
Discontinued operations,
net of tax (0.02) (0.01) (0.04) (0.02)
--------- --------- --------- ---------
Net earnings (loss) $0.16 $(0.14) $0.49 $(0.21)
========= ========= ========= =========
Diluted earnings (loss) per share:
Earnings (loss) from continuing
operations $0.18 $(0.13) $0.53 $(0.19)
Discontinued operations,
net of tax (0.02) (0.01) (0.04) (0.02)
--------- --------- --------- ---------
Net earnings (loss) $0.16 $(0.14) $0.49 $(0.21)
========= ========= ========= =========
Weighted average shares used
for basic per share data 36,435 36,078 36,277 36,008
Effect of dilutive common stock
options 300 - 211 -
--------- --------- --------- ---------
Weighted average shares used
for dilutive per share data 36,735 36,078 36,488 36,008
========= ========= ========= =========
Central Parking Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
Amounts in thousands
June 30, September 30,
2004 2003
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $29,988 $31,572
Management accounts receivable 42,056 34,174
Accounts receivable - other 9,342 15,440
Current portion of notes receivable 5,446 8,220
Prepaid expenses 15,405 11,424
Assets held for sale 15,775 39,417
Refundable income taxes 1,237 5,483
------------- -------------
Total current assets 119,249 145,730
Notes receivable, less current portion 39,884 40,879
Property, equipment and leasehold
improvements, net 392,934 414,265
Contract and lease rights, net 89,716 102,315
Goodwill, net 232,562 230,312
Investment in and advances to partnerships
and joint ventures 9,531 13,649
Other assets 44,447 42,297
------------- -------------
Total Assets $928,323 $989,447
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $15,461 $3,623
Accounts payable 73,155 80,128
Accrued expenses 44,666 43,661
Management accounts payable 25,835 22,392
------------- -------------
Total current liabilities 159,117 149,804
Long-term debt and capital lease
obligations, less current portion 176,605 266,961
Subordinated debentures 78,085 78,085
Deferred rent 25,273 27,569
Deferred income taxes 6,465 3,010
Other liabilities 14,900 16,303
------------- -------------
Total liabilities 460,445 541,732
------------- -------------
Minority interest 29,939 31,189
Shareholders' equity:
Common stock 366 362
Additional paid-in capital 249,459 246,559
Accumulated other comprehensive income, net 2,336 78
Retained earnings 186,483 170,232
Other (705) (705)
------------- -------------
Total shareholders' equity 437,939 416,526
------------- -------------
Total Liabilities and Shareholders' Equity $928,323 $989,447
============= =============
Central Parking Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Amounts in thousands
YTD June 30,
2004 2003
--------- ---------
Cash flows from operating activities:
Net earnings (loss) $17,898 $(7,413)
Loss from discontinued operations 1,488 578
--------- ---------
Earnings from continuing operations 19,386 (6,835)
Adjustments to reconcile earnings (loss) from
continuing operations to net cash provided by
operating activities - continuing operations:
Depreciation and amortization 24,781 24,754
Equity in partnership and joint venture earnings 2,389 (1,824)
Distributions from partnerships and joint
ventures 1,237 1,375
Gain on sale of non operating assets - (3,279)
Property-related (gains) losses, net (5,705) 6,847
Decrease in fair value of derivatives - 630
Deferred income taxes 4,346 (9,866)
Minority interest, net of tax 2,435 3,244
Changes in operating assets and liabilities:
Management accounts receivable (7,882) 3,612
Accounts receivable - other 6,098 2,317
Prepaid expenses (3,981) (1,613)
Other assets (7,478) 12,600
Accounts payable, accrued expenses and other
liabilities (13,319) 4,940
Management accounts payable 3,443 1,511
Deferred rent (2,296) (1,130)
Refundable income taxes 4,246 (10,904)
Income taxes payable - (9,851)
--------- ---------
Net cash provided by operating activities -
continuing operations 27,700 16,528
Net cash provided (used) by operating
activities - discontinued operations 973 (75)
--------- ---------
Net cash provided by operating activities 28,673 16,453
--------- ---------
Cash flows from investing activities:
Proceeds from disposition of property and
equipment 62,026 17,918
Purchase of property, equipment and leasehold
improvements (12,167) (51,952)
Purchase of contract and lease rights (4,530) (7,186)
Acquisitions, net of cash acquired - (1,997)
Other investing activities 4,248 4,963
--------- ---------
Net cash provided (used) by
investing activities 49,577 (38,254)
--------- ---------
Cash flows from financing activities:
Dividends paid (1,647) (1,623)
Net (repayments) under revolving credit
agreement (59,000) (74,500)
Proceeds from issuance of notes payable, net of
issuance costs 1,864 176,332
Principal repayments on long-term debt and
capital lease obligations (21,382) (78,299)
Payment to minority interest partners (3,224) (3,914)
Proceeds from issuance of common stock and
exercise of stock options 2,904 2,995
--------- ---------
Net cash (used) provided by
financing activities (80,485) 20,991
--------- ---------
Foreign currency translation 651 822
--------- ---------
Net (decrease) increase in cash and
cash equivalents (1,584) 12
Cash and cash equivalents at beginning of period 31,572 33,498
--------- ---------
Cash and cash equivalents at end of period $29,988 $33,510
========= =========
Key Financial Metrics
(In thousands)
QTD Ended June 30, YTD Ended June 30,
2004 2003 2004 2003
--------- --------- --------- ---------
Net earnings (loss) $5,968 ($5,128) $17,898 ($7,413)
Interest expense 4,838 5,886 15,268 16,523
Income tax expense (benefit) 4,728 (5,340) 12,273 (4,998)
Depreciation/amortization 7,722 7,074 23,380 23,464
Minority interest, net of tax 778 884 2,435 3,244
--------- --------- --------- ---------
EBITDA $24,034 $3,376 $71,254 $30,820
========= ========= ========= =========
In addition to disclosing financial results prepared in accordance
with U.S. generally accepted accounting principles, the Company
discloses information regarding EBITDA. EBITDA is a non-GAAP financial
measure defined as earnings before interest, taxes, depreciation/
amortization, minority interest, and cumulative effect in accounting
changes. The Securities and Exchange Commission ("SEC") adopted new
rules concerning the use of non-GAAP financial measures. As required
by the SEC, the Company provides the above reconciliation to net
earnings (loss) which is the most directly comparable GAAP measure.
The Company presents EBITDA as it is a common alternative measure of
performance which is used by management as well as investors when
analyzing the financial position and operating performance of the
Company. As EBITDA is a non-GAAP financial measure, it should not be
considered in isolation or as a substitute for net earnings (loss) or
any other GAAP measure. Because EBITDA is not calculated in the same
manner by all companies, the Company's definition of EBITDA may not be
consistent with that of other companies.
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