REPEAT/Central Parking Corporation Reports Fiscal Fourth Quarter and Full Year 2002 Earnings.Business Editors & Travel Writers REPEATING DUE TO LINE TROUBLE 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. 4, 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 fourth fiscal quarter ended September September: see month. 30, 2002 before property-related activities and non-recurring 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 $7.8 million, or $0.22 per share, an increase of 15% over prior year results of $6.8 million, or $0.18 per share. 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. per share have been increased by $0.07 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 Statement of Financial Accounting Standards No. 142. Revenues (excluding reimbursed management costs) for the fourth quarter of fiscal 2002 increased to $177.9 million, an increase of 2% over the $174.4 million recorded in the year-earlier period. As previously announced in the fiscal third quarter of fiscal 2002, the Company 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 for costs directly reimbursed related to its management agreements. 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. All prior periods presented have been restated 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 quarter ended September 30, 2002, the impact is an increase of $100.6 million in revenues and expenses. Pro forma earnings for the year ended September 30, 2002 totaled $38.2 million, or $1.06 per share, a decrease of 9% versus earnings of $41.9 million, or $1.16 per share, for fiscal 2001. Again, for comparability purposes, prior year pro forma earnings have been adjusted upward by $0.30 per share to reflect the discontinuation of goodwill amortization. Revenues (excluding reimbursed management costs) for fiscal 2002 totaled $716.9 million, an increase of 2%, versus $705.2 million in the year earlier period. During the fourth fiscal quarter of 2002, the Company finalized See finalization. the adoption of the new accounting standard regarding goodwill (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), which requires that goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. with indefinite INDEFINITE. That which is undefined; uncertain. INDEFINITE, NUMBER. A number which may be increased or diminished at pleasure. 2. When a corporation is composed of an indefinite number of persons, any number of them consisting of a majority of those useful lives no longer be amortized, but instead be tested for 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. at least annually. As a result of this adoption, the Company recorded a cumulative effect of accounting change of $9.3 million, net of taxes, to reflect the goodwill impairment under the new accounting standard as of October 1, 2001. Reported earnings (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) for the quarter ended September 30, 2002 were $0.12 per share versus $0.03 in the prior year period. Reported earnings (GAAP) for the year ended September 30, 2002 were $0.93 per share, an increase of 29% over prior year earnings of $0.72 per share. Total year cash flow from operating activities totaled $74.8 million, an increase of $27.6 million (58%) over prior year. A portion of cash flow was used to reduce debt and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. obligations a total of $33.7 million. The debt-to-total capital ratio at September 30, 2002 improved to 0.449 versus 0.494 a year ago. 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., CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "Earnings for the fourth quarter of fiscal 2002 were in line with our July July: see month. guidance. Pro forma earnings exceeded last year's level by 15%, a period that was negatively impacted by the events of September 11th. We continue to build earnings momentum despite a challenging economic environment. Same-store business volumes 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. improved during the fourth quarter with transient A malfunction that occurs at random intervals and lasts for a short duration such as a spike or surge in a power line or a memory cell that intermittently fails. See spike and power surge. transient - 1. revenues exceeding the same period last year, however, monthly parking levels continue to be down slightly, primarily due to job losses in Manhattan Manhattan, indigenous people of North America Manhattan (mănhăt`ən), indigenous people of North America of the Algonquian-Wakashan linguistic stock (see Native American languages). . Same-store revenues for the balance of the country remain somewhat stable with pricing flat to down 1% and volume off 1%-2% as unemployment remains relatively high. Despite the economic impact on same-store volume, total fourth quarter revenues grew 2% versus the same period last year bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. by the efficient integration of profitable acquisitions and another quarter of successful marketing efforts as evidenced by a new/lost business ratio of 1.4. "Looking forward, for fiscal year 2003 we expect revenues (excluding reimbursed management costs) to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $757 to $771 million, an increase of about 6-8%. Our assumption is that economic growth will be 2-2.5% resulting in only modest price increases in the 1% range. The balance of our revenue growth will come from new business and improved revenue management through technology and process improvements. Based on this revenue growth, we estimate earnings for the year to total $1.18 to $1.23 per share before property-related activities (pro forma) compared to $1.06 per share in fiscal 2002. This is consistent with our expectations of growing earnings at a rate approximately twice revenue growth, reflecting the lower cost benefits associated with "Operational Excellence." Operational Excellence is our one corporate-wide initiative which is designed to deliver high quality service to our customers at the lowest cost levels in the industry. "For the first quarter of fiscal 2003, we expect revenues (excluding reimbursed management costs) to be approximately $184-$187 million and pro forma earnings of $0.30-$0.33 per share. This forecast is based on our expectations that economic growth will be modest over the next several months as the country works it way through the uncertainty with Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. and diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. consumer confidence. Nonetheless, we are projecting revenue growth based on our successful marketing efforts during 2002. In fact, these efforts are accelerating as we closed new opportunities in October which will add approximately $10 million to revenues on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis." Vareschi concluded, "We are beginning to see improvement in our margin rates and in our operating results. Although Operational Excellence is in the early innings INNINGS, estates. Lands gained from the sea by draining. Cunn. L. Dict. h. t.; Law of Sewers, 31. , the returns are beginning to flow through to the bottom line. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that fiscal 2003 will produce solid improvement in results as we focus on executing "Operational Excellence." 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 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 , 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. , 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, 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. , 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 Section21E of the Securities and Exchange Act of 1934. These projections and statements reflect the Company's current views with the 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 Twelve Months Ended
September 30, September 30,
2002 2001 2002 2001
----------- ----------- ----------- -------------
Total revenues (a) $177,898 $ 174,415 $716,948 $ 705,159
Total cost and
expenses (a) (b) (163,315) (160,318) (645,871) (622,508)
Interest expense,
net (995) (2,332) (6,369) (13,717)
Other (expenses)
income, net (330) (548) (901) (811)
Income taxes (c) (4,220) (3,159) (20,704) (21,985)
Minority interest,
net of tax (1,222) (1,277) (4,874) (4,246)
--------- --------- --------- ----------
Earnings
(pro forma) 7,816 6,781 38,229 41,892
Property-related
gains (losses),
net of tax (3,385) (3,050) (667) (4,902)
Gain on repurchase
of mandatorily
redeemable
convertible
securities of a
subsidiary trust,
net of tax -- -- 5,547 --
Amortization of
goodwill, net of
tax -- (2,773) -- (10,879)
Cumulative effect
of account
change, net of
tax -- -- (9,341) (258)
-------- --------- --------- -----------
Net earnings
(GAAP) $ 4,431 $ 958 $ 33,768 $ 25,853
======== ========= ========= ==========
Pro forma earnings
Basic $ 0.22 $ 0.19 $ 1.07 $ 1.17
Diluted $ 0.22 $ 0.18 $ 1.06 $ 1.16
Net earnings per
share (GAAP)
Basic $ 0.12 $ 0.03 $ 0.94 $ 0.72
Diluted $ 0.12 $ 0.03 $ 0.93 $ 0.72
Weighted average
common shares:
Basic 35,945 35,757 35,849 35,803
Diluted 36,275 36,924 36,211 36,015
(a) Excludes revenues and expenses for amounts directly reimbursed
by management clients.
(b) Excludes amortization of goodwill of $2,903 and $11,399 for
the three and twelve months ended September 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 twelve months ended
September 30, 2002 excludes income tax benefits on net
property-related losses of $2,256 and $239, respectively, and income
tax expense on gain on repurchase of mandatorily redeemable
convertible securities of $0 and $3,698, respectively. Income tax
expense for the three and twelve months ended September 30, 2001
excludes income tax benefit on net property-related losses of $1,628
and $2,353, respectively, and income tax benefit on goodwill
amortization of $130 and $520, respectively.
Central Parking Corporation and Subsidiaries
Consolidated Statements of Earnings
(Unaudited)
Amounts in thousands, except per share data
Three Months Ended Sept. 30,
2002 2001
------------- --------------
Revenues:
Parking $ 147,032 $ 148,631
Management contract and other 30,866 25,784
------------- --------------
177,898 174,415
Reimbursement of management
contract expenses 100,601 99,936
------------- --------------
Total revenues 278,499 274,351
Costs and expenses:
Cost of parking 133,404 134,391
Cost of management contracts 11,416 9,996
General and administrative 18,402 15,796
Goodwill and non-compete
amortization 93 3,038
------------- --------------
163,315 163,221
Reimbursed management
contract expenses 100,601 99,936
------------- --------------
Total costs and
expenses 263,916 263,157
Property-related losses, net (5,641) (4,678)
------------- --------------
Operating earnings 8,942 6,516
Other income (expenses):
Interest income 2,032 1,466
Interest expense (3,027) (3,798)
Dividends on company-obligated
mandatorily redeemable
convertible securities of a
subsidiary trust (1,045) (1,471)
Equity in partnership and
joint venture earnings 715 923
------------- --------------
Earnings before income taxes
and minority interest 7,617 3,636
Income tax expense (1,964) (1,401)
Minority interest (1,222) (1,277)
------------- --------------
Net earnings $ 4,431 $ 958
============= ============
Basic earnings per share:
Net earnings $ 0.12 $ 0.03
============= ============
Diluted earnings per share:
Net earnings $ 0.12 $ 0.03
============= ============
Central Parking Corporation and Subsidiaries
Consolidated Statements of Earnings
(Unaudited)
Amounts in thousands, except per share data
Twelve Months Ended Sept. 30,
2002 2001
------------------ ------------------
Revenues:
Parking $ 595,836 $ 603,416
Management contract
and other 121,112 101,743
------------- ----------
716,948 705,159
Reimbursement of
management contract expenses 390,306 373,413
------------- ----------
Total revenues 1,107,254 1,078,572
Costs and expenses:
Cost of parking 525,336 513,571
Cost of management contracts 49,159 41,188
General and administrative 70,973 67,107
Goodwill and non-compete
amortization 403 12,041
-------------- -----------
645,871 633,907
Reimbursed management
contract expenses 390,306 373,413
------------- -----------
Total costs and expenses 1,036,177 1,007,320
Property-related losses, net (906) (7,255)
------------- -----------
Operating earnings 70,171 63,997
Other income (expenses):
Interest income 6,119 5,807
Interest expense (12,488) (19,524)
Dividends on company-obligated
mandatorily redeemable
convertible securities of a
subsidiary trust (4,868) (5,886)
Gain on repurchase of
company-obligated mandatorily
redeemable convertible
securities of a subsidiary
trust 9,245 --
Equity in partnership and
joint venture earnings 3,967 5,075
-------------- --------------
Earnings before income
taxes, minority interest
and cumulative effect of
accounting change 72,146 49,469
Income tax expense (24,163) (19,112)
Minority interest (4,874) (4,246)
--------------- --------------
Earnings before cumulative
effect of accounting change 43,109 26,111
Cumulative effect of accounting
change, net of tax (9,341) (258)
--------------- -----------
Net earnings $ 33,768 $ 25,853
=============== ===========
Basic earnings per share:
Earnings before cumulative
effect of accounting
change $ 1.20 $ 0.73
Cumulative effect of
accounting change,
net of tax (0.26) (0.01)
------------- - -----------
Net earnings $ 0.94 $ 0.72
============= ============
Diluted earnings per share:
Earnings before cumulative
effect of accounting
change $ 1.19 $ 0.73
Cumulative effect of
accounting change,
net of tax (0.26) (0.01)
-------------- ------------
Net earnings $ 0.93 $ 0.72
============== ============
Central Parking Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
Amounts in thousands
Sept. 30, Sept. 30,
2002 2001
------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 33,498 $ 41,849
Management accounts receivable 39,664 32,613
Accounts receivable - other 15,714 16,149
Current portion of
notes receivable 11,549 6,836
Prepaid expenses 9,835 6,939
Deferred income taxes 72 259
----------- ------------
Total current assets 110,332 104,645
Notes receivable, less
current portion 41,210 42,931
Property, equipment and
leasehold improvements, net 434,733 415,405
Contract and lease rights, net 108,406 88,094
Goodwill, net 242,141 250,630
Investment in and advances to
partnerships and joint ventures 12,836 30,704
Other assets 49,226 54,472
----------- ------------
Total Assets $ 998,884 $ 986,881
=========== ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt and capital lease
obligations $ 53,318 $ 53,337
Accounts payable 73,638 77,887
Accrued expenses 43,659 24,997
Management accounts payable 22,671 20,541
Income taxes payable 9,851 7,134
----------- ------------
Total current liabilities 203,137 183,896
Long-term debt and capital lease
obligations, less current
portion 207,098 208,885
Deferred rent 29,104 22,310
Deferred income taxes 13,825 15,757
Minority interest 31,572 31,121
Other liabilities 20,259 33,466
----------- ------------
Total liabilities 504,995 495,435
----------- ------------
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 242,112 238,464
Accumulated other
comprehensive loss, net (2,377) (1,979)
Retained earnings 176,924 145,308
Other (1,215) (705)
---------- ------------
Total shareholders' equity 415,804 381,446
----------- ------------
Total Liabilities and
Shareholders' Equity $ 998,884 $ 986,881
=========== ============
Central Parking Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Amounts in thousands
Twelve Months Ended Sept. 30,
2002 2001
--------------- ---------------
Cash flows from operating activities:
Net earnings $ 33,768 $ 25,853
Depreciation and amortization 34,500 44,263
Equity in partnership and
joint venture earnings (3,967) (5,075)
Distributions from
partnerships and joint
ventures 3,938 3,300
Property-related losses, net 906 7,255
Gain on repurchase of
mandatorily redeemable
convertible securities (9,245) --
Cumulative effect of
accounting change, net of tax 9,341 258
Deferred income taxes (1,738) (7,350)
Minority interest 4,874 4,246
Changes in operating assets
and liabilities (net of
acquisitions):
Management accounts receivable (4,967) (819)
Accounts receivable - other 1,001 (1,154)
Prepaid expenses (2,896) 2,773
Other assets (288) (10,051)
Accounts payable, accrued
expenses and other
liabilities (1,584) (4,966)
Management accounts payable 1,692 (12,911)
Deferred rent 6,794 2,703
Income taxes payable 2,691 (1,145)
----------- ------------
Net cash provided by
operating activities 74,820 47,180
----------- ------------
Cash flows from investing
activities:
Proceeds from disposition of
property and equipment 16,651 30,800
Proceeds from sale of
investment in partnership 18,399 --
Purchase of property,
equipment and leasehold
improvements (36,522) (28,639)
Purchase of contract and
lease rights (18,948) (2,583)
Acquisitions, net of
cash acquired (17,788) --
Other investing activities 698 1,596
------------ ------------
Net cash provided (used)
by investing activities (37,510) 1,174
------------ ------------
Cash flows from financing
activities:
Dividends paid (2,152) (2,163)
Net borrowings under revolving
credit agreement 33,500 22,488
Principal repayments on notes
payable and capital leases (54,214) (55,629)
Proceeds from notes payable 1,136 --
Payments to minority
interest partners (4,563) (4,233)
Repurchase of common stock (488) (12,848)
Repurchase of mandatorily
redeemable securities (21,823) --
Issuance of common stock and
exercise of stock options 3,373 2,490
------------ ------------
Net cash used by
financing activities (45,231) (49,895)
------------ ------------
Foreign currency translation (430) 176
------------ ------------
Net decrease in cash and
cash equivalents (8,351) (1,365)
Cash and cash equivalents
at beginning of period 41,849 43,214
--------------- -------------
Cash and cash equivalents
at end of period $ 33,498 $ 41,849
=============== ==============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion