Standard Parking Corporation Reports Strong Second Quarter and First Half Results; Repays All 9.25% Debt; Raises Guidance for 2006.CHICAGO Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. -- Standard Parking Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :STAN), one of the nation's largest providers of parking management services, today announced second quarter 2006 earnings per share of $0.43 as compared with $0.40 per share in the second quarter of 2005. Revenue (excluding reimbursed management contract expense) and gross profit for the 2006 second quarter grew 4% and 7%, respectively. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income increased by 15%. Second Quarter Highlights --Revenue (excluding reimbursed management contract expense) and gross profit growth of approximately 4% and 7%, respectively --Pre-tax income increased by more than 15% despite the continuing effects of Hurricane Katrina  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. --Free cash flow of $13.6 million or $1.33 per share --Location retention reached 92%, highest level since 1998 --Repurchased 105,000 shares of common stock for $3.0 million --Amended senior credit facility to provide $45 million increase in borrowing capacity, more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. pricing and extension of term through June June: see month. 2011 --Announced redemption of all remaining 9.25% senior subordinated notes effective July July: see month. 31, 2006 2006 Year Guidance Raised --EPS expectation of $1.60 - $1.70 (an increase of $0.10) --Pre-tax income per share expectation of $1.84 - $1.94 (an increase of $0.10) --Free cash flow of $20 million or higher James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. A. Wilhelm Wilhelm. For German rulers thus named, use William. , President and Chief Executive Officer, said, "We are obviously pleased to deliver yet another quarter of solid operating results. Strong 15% growth in pre-tax income reflects the Company's ongoing ability to provide consistent, predictable financial results despite the continuing impact of Hurricane Katrina. "We added 18 net new locations during the second quarter of 2006, and our retention rate for existing business improved to 92% for the twelve months ended June 30, 2006. Our improving retention rate speaks to our product and our ability to deliver it, whether through stringent internal auditing of our revenue controls, our parker-oriented amenity a·men·i·ty n. pl. a·men·i·ties 1. The quality of being pleasant or attractive; agreeableness. 2. Something that contributes to physical or material comfort. 3. programs or our technological solutions for clients. The fact that we are winning more than we are losing provides further evidence that our product is being well received in the market." Second Quarter Operating Results Revenue for the second quarter of 2006, excluding reimbursed management contract expense, increased by approximately 4% to $64.9 million from $62.5 million in the year ago period. Excluding New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded , revenue from same locations (locations open more than one year) increased by 6% as compared to the second quarter of 2005. Gross profit in the quarter increased by more than 7% to $18.8 million from $17.5 million a year ago, despite the fact that gross profit from the Company's New Orleans operations was $0.5 million less than the year ago period due to Hurricane Katrina. While the recovery in New Orleans continues, progress is slow and not all of the City's operations are back to pre-Hurricane levels. During the second quarter, however, the Company did resume collections from the City's on-street adj. 1. at the sides of streets; as, on-street parking is prohibited at rush hour s>. Opposite of off-street nt>. Adj. 1. on-street - at the sides of streets; "on-street parking is prohibited at rush hour" meters, and now is collecting revenues from 3,800 parking spaces. An insurance claim for the Company's Hurricane-related losses has been filed, although no final determination is expected before the end of 2006. Second quarter 2006 gross profit included $0.2 million realized from the Sound Parking portfolio, which was partially offset by a $0.1 million charge related to an operation in Minnesota Minnesota, state, United States Minnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces . The contract for the Minnesota location was terminated as of the end of May 2006, and the Company does not expect any further financial obligations related to that contract. Same location gross profit increased by 6% during the second quarter, and would have been 8% excluding New Orleans. General and administrative expenses increased by approximately 9% to $10.1 million from $9.2 million a year ago. The increase was due partially to the January January: see month. acquisition of the Sound Parking operations of $0.1 million and stock compensation expense of $0.2 million resulting from the adoption of FAS 123R. Also, audit and Sarbanes-Oxley costs were incurred earlier in the year this year as compared to last year contributing to $0.2 million of the increase in G&A. The remainder of the increase was due to resource investments in new initiatives that began in the latter part of 2005. Second quarter 2006 general and administrative expenses were down $0.6 million, or almost 6% as compared to the 2006 first quarter, and the Company expects that its underlying G&A run rate for the remainder of 2006 will be consistent with second quarter levels. Second quarter 2006 operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased by almost 6% to $7.2 million versus $6.8 million in the year ago quarter. Free cash flow was used to reduce borrowings, resulting in reduced leverage and borrowing rates. Therefore, despite a higher interest rate environment, interest expense for the second quarter of 2006 decreased by almost 11% to $2.2 million from $2.5 million a year ago. Pre-tax income for the second quarter increased by more than 15% to $5.0 million, or $0.49 per share, from $4.4 million, or $0.41 per share, in the second quarter of 2005. The Company expects its 2006 book tax provision to be approximately 15% in the absence of any changes to the valuation allowance for its deferred tax assets. Given the potential for significant fluctuation Fluctuation A price or interest rate change. in GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). tax expense, the Company considers year-over-year growth in pre-tax income to be the most meaningful measure of its overall earnings performance. The Company continues to expect its cash tax expense to be under 5% for 2006. Net income for the 2006 second quarter was $4.4 million, or $0.43 per share, versus $4.3 million, or $0.40 per share, a year ago. Free cash flow for the second quarter was $13.6 million as compared with $2.8 million a year ago. As noted in the first quarter release, there was a permanent shift in the timing of approximately $3.0 million in payments under the Company's performance-based compensation program, from the 2005 second quarter to the first quarter of 2006 (and subsequent years). Normal fluctuations in the timing of payments, collections and certain accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. can impact free cash flow significantly. In the first quarter of 2006, such fluctuations resulted in negative cash flow. As expected, many of these items reversed in the second quarter, resulting in the higher free cash flow. Free cash flow was used to repay debt and 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. shares of the Company's stock in open market transactions totaling $3.0 million. The Company repurchased approximately 105,000 shares at an average price of $28.50. Through June 2006, the Company has repurchased stock at a cost totaling $6.0 million of the $7.5 million authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Board. Debt Refinancing Refinancing An extension and/or increase in amount of existing debt. As previously announced, the Company has entered into an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and restated senior credit agreement. The $135 million revolving facility, which matures in June 2011, represents a commitment increase of $45 million. Key changes to the credit agreement consist of a reduction in the pricing of the LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). Margin, Base Rate Margin and the Letter of Credit Fee Rate of up to 50 basis points. On July 31, the Company repaid the remaining principal balance Remaining principal balance The amount of principal dollars remaining to be paid under a mortgage as of a given time. of $48.9 million, along with accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. , on all of its remaining 9.25% Notes with lower cost borrowings under its senior credit agreement. As a measure of protection against rising interest rates, on August 1, 2006, the Company purchased a three-year interest rate cap on $50 million of revolving borrowings, which will cap LIBOR at 5.75%. Wilhelm commented, "Our debt refinancing represents the latest step in our ongoing efforts to lower the cost of our debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and overall cost of capital while maintaining a high degree of financial flexibility. Our consistent performance from both an earnings and cash flow perspective has enabled us to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. our debt and achieve an expected cost savings of $0.04 per share for the remainder of 2006." Recent Developments Significant contract awards achieved during the second quarter include: --A multi-year contract to manage over 15,000 parking spaces at the Portland International Airport
in Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. . Four other parking operators, including the incumbent, had competed for this contract. --Expansion of the Company's contract with the Cincinnati Cincinnati (sĭnsənăt`ē, –năt`ə), city (1990 pop. 364,040), seat of Hamilton co., extreme SW Ohio, on the Ohio River opposite Newport and Covington, Ky.; inc. as a city 1819. Airport to include shuttle shuttle: see loom. shuttle In the weaving of cloth, a spindle-shaped device used to carry the crosswise threads (weft) through the lengthwise threads (warp). Not all modern looms use a shuttle; shuttleless looms draw the weft from a nonmoving supply. bus services to transport employees and customers from the terminals to remote parking lots. --A contract to manage 6,000 parking spaces serving the newly constructed Toyota Park Toyota Park can refer to two different stadiums.
conflagration destroyed most of city (1871). [Am. Hist.: Jameson, 94] See : Disaster . The 28,000 seat stadium will also host concerts and other special events throughout the year. With the award of this new contract, Standard Parking now manages every major sports stadium parking facility in the Chicago area. --A multi-year contract to manage parking at the Gateway East and Gateway North garages in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. . The parking garages serve the downtown Cleveland Downtown Cleveland is the central business district of the City of Cleveland and Northeast Ohio. Reinvestment in the area in the mid-1990s spurred a rebirth that continues to this day, with over $2 billion in capital projects slated to involve the downtown area over the next few market as well as Jacobs Field • • [ , home of Major League Baseball's Cleveland Indians Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. , as well as Quicken Loans Arena Current arenas in the National Basketball AssociationWestern Conference Eastern Conference American Airlines Center | ARCO Arena | AT&T Center | EnergySolutions Arena | FedExForum | KeyArena | New Orleans Arena | Oracle Arena | Pepsi Center | Rose Garden Arena | Staples , home to the National Basketball Association's Cleveland Cavaliers The Cleveland Cavaliers (also known as the Cavs) are a professional basketball team based in Cleveland, Ohio. They began playing in the National Basketball Association (NBA) as a 1970 expansion team and won their first Eastern Conference Championship in 2007. . --A contract to manage the parking serving the Pearl Harbor Pearl Harbor, land-locked harbor, on the southern coast of Oahu island, Hawaii, W of Honolulu; one of the largest and best natural harbors in the E Pacific Ocean. In the vicinity are many U.S. military installations, including the chief U.S. Visitors Center in Honolulu Honolulu (hŏn'əl  `l, hōnō–), city (1990 pop. . The parking lot provides visitor parking
for the Battleship battleship, large, armored warship equipped with the heaviest naval guns. The evolution of the battleship, from the ironclad warship of the mid-19th cent., received great impetus from the Civil War. USS Missouri Three ships of the United States Navy have borne the name USS Missouri in honor of the 24th state.
abbr. 1. United States Senate 2. United States ship USS abbr (= United States Ship) → Namensteil von Schiffen der Kriegsmarine Bowfin bowfin, primitive freshwater fish found in the Mississippi basin, the Great Lakes, and E to Vermont. The bowfin has a light covering of rounded, overlapping scales, a large mouth, and sharp teeth. Submarine submarine, naval craft capable of operating for an extended period of time underwater. Submarines are almost always warships, although a few are used for scientific or business purposes (see also submersible). Museum, as well as overflow parking for the USS Arizona Memorial USS Arizona Memorial: see National Parks and Monuments (table). . --A contract awarded by the New York City Economic Development Corporation Overview New York City Economic Development Corporation (NYCEDC) is a non-profit local development corporation that promotes economic growth across New York City's five boroughs. to manage two parking facilities containing 850 parking spaces and shuttle busses that serve the Staten Island Ferry The Staten Island Ferry is a passenger ferry operated by the New York City Department of Transportation between Whitehall Street at the southernmost tip of Manhattan near Battery Park (South Ferry) and St. . --A multi-year contract awarded to operate Market Place I & II in Seattle, Washington  This page is protected from moves until disputes have been resolved on the .The reason for its protection is listed on the protection policy page. . The award enhances the relationship between Standard Parking and Tishman Speyer, one of the world's leading owners, developers and operators of first-class real estate. --Expansion of the Company's contract with New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Hospital Queens to include a shuttle operation that transports employees, physicians and visitors to and from area parking facilities to the Medical Center. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results Revenue for the first half of 2006, excluding reimbursed management contract expense, increased by over 4% to $128.5 million from $123.0 million in the first half of 2005. Gross profit for the first half of 2006 increased over 12% to $37.6 million from $33.5 million in the year ago period. The Sound Parking portfolio in Seattle that the Company acquired in January 2006 generated $0.4 million of gross profit in 2006. Gross profit for 2006 was negatively affected, however, by $0.8 million due to the continuing impact of Hurricane Katrina and by a $0.2 million charge related to the terminated Minnesota operation. General and administrative expenses for the first six months of 2006 increased 13% to $20.7 million from $18.3 million for the first six months of 2005. Aside from the ongoing costs related to permanent resource investment in growth initiatives, other contributing factors include expenses associated with the acquired Sound Parking operations of $0.3 million, stock compensation expense of $0.3 million, and additional audit and Sarbanes-Oxley expenses of $0.2 million. Operating income for the first half of 2006 increased almost 22% to $13.9 million from $11.4 million in the first half of 2005. Excluding the $0.9 million valuation allowance taken in the first quarter of 2005, first half 2006 operating income would have increased 13% over first half 2005 results. Interest expense decreased by $0.5 million to $4.4 million for the first six months of 2006, due to a reduction in outstanding borrowings and applicable rates. Pre-tax income was $9.4 million, an increase of almost 46% over the same period last year. After adjusting for last year's valuation allowance, pre-tax income for the first six months of 2006 increased 28% as compared with the same period of 2005. Income tax expense was $1.3 million for the first six months of 2006 as compared with $0.1 million for the six months of 2005 due to the recording of $0.5 million of quarterly deferred tax expense. Net income for the first half of 2006 was $8.2 million as compared with $6.4 million in the same period of 2005, an increase of 29%. This translates to earnings per share of $0.79 for the first half of 2006 as compared with $0.60 for the same period last year. The Company generated $10.8 million of free cash flow during the first half of 2006 as compared with $8.7 million during the first half of 2005. With the elimination of semi-annual interest payments that will result from the Company's July 2006 redemption of all of its outstanding 9.25% Notes, the timing of free cash flow will change from its historical patterns, even without the normal fluctuations in working capital. The Company nevertheless continues to expect to generate at least $20 million in 2006 free cash flow. Wilhelm concluded, "Our pipeline for new business remains strong, especially in our airport and hospital / university businesses. In the Airport Division, we retained every contract that was up for bid during the first two quarters and added some new inventory. We are on track with what we have forecasted in terms of deals for the third and fourth quarters. "As expected, our recent acquisition of the Sound Parking portfolio is providing benefits through its integration into our operations in the Pacific Northwest. We are successfully leveraging its relationships with our size to participate in major transactions in that marketplace that neither Company would have been able to accomplish on its own. "Finally, due to our stock's performance and the resulting increase in our market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , Standard Parking recently was added to the Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. . We look forward to the increased visibility that this recognition will bring." Financial Outlook Based on the year-to-date results, the Company is raising its net earnings guidance for the 2006 year by $0.10 to $1.60 - $1.70 per share. The Company also is raising its pre-tax income per share expectation by $0.10 to $1.84 - $1.94. The Company also reaffirms its expectation that free cash flow will be $20 million or higher for the year. Conference Call The Company's quarterly earnings conference call will be held at 10:00 am (CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT ) on Thursday, August 3, 2006, and will be available live and in replay to all analyst/investors through a webcast service. To listen to the live call, individuals are directed to the Company's investor relations Investor relations The process by which the corporation communicates with its investors. page at www.standardparking.com or www.earnings.com at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those who cannot listen to the live broadcast, replays will be available shortly after the call on either website and can be accessed for 30 days after the call. Standard Parking is a leading national provider of parking facility management services. The Company provides on-site management services at multi-level and surface parking facilities for all major markets of the parking industry. The Company manages over 1,900 parking facilities, containing over one million parking spaces in more than 300 cities across 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 Canada, including parking-related and shuttle bus operations serving more than 60 airports. More information about Standard Parking is available at www.standardparking.com. You should not construe construe v. to determine the meaning of the words of a written document, statute or legal decision, based upon rules of legal interpretation as well as normal meanings. the information on this website to be a part of this report. Standard Parking's 2005 annual report filed on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , its periodic reports on Form 10-Q Form 10-Q See 10-Q. and 8-K and its Registration Statement on Form S-1 (333-112652) are available on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.sec.gov and can also be accessed through the Investor Relations section of the Company's website. DISCLOSURE NOTICE: The information contained in this document is as of August 2, 2006. The Company assumes no obligation to update any 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. contained in this document as a result of new information or future events or developments. This document and the attachments contain forward-looking information about the Company's financial results that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "outlook," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially are the following: an increase in owner-operated parking facilities; changes in patterns of air travel or automobile usage, including effects of changes in gas and airplane airplane, aeroplane, or aircraft, heavier-than-air vehicle, mechanically driven and fitted with fixed wings that support it in flight through the dynamic action of the air. fuel prices, effects of weather on travel and transportation patterns or other events affecting local, national and international economic conditions; implementation of the Company's operating and growth strategy, including possible strategic acquisitions; the loss, or renewal on less favorable terms, of management contracts and leases; player strikes or other events affecting major league sports; changes in general economic and business conditions or demographic trends; ongoing integration of past and future acquisitions in light of challenges in retaining key employees, synchronizing synchronizing, n a technique that a therapist uses to coordinate his or her breath with that of the client; builds trust and establishes relationship. business processes and efficiently integrating facilities, marketing and operations; changes in current pricing; development of new, competitive parking-related services; changes in federal and state regulations including those affecting airports, parking lots at airports and automobile use; extraordinary events affecting parking at facilities that we manage, including emergency safety measures safety measures, n.pl actions (e.g., use of glasses, face masks) taken to protect patients and office personnel from such known hazards as particles and aerosols from high-speed rotary instruments, mercury vapor, radiation exposure, anesthetic and , military or terrorist attacks and natural disasters; the Company's ability to renew the Company's insurance policies on acceptable terms, the extent to which the Company's clients purchase insurance through us and the Company's ability to successfully manage self-insured self-insured Self fund Health insurance adjective Referring to the practice of carrying an individual health insurance policy for oneself; self insurance is usually more expensive than group insurance losses; the Company's ability to form and maintain relationships with large real estate owners, managers and developers; the Company's ability to provide performance bonds on acceptable terms to guarantee the Company's performance under certain contracts; the loss of key employees; the Company's ability to develop, deploy and utilize information technology; the Company's ability to refinance 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. ; the Company's ability to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. transactions and integrate newly acquired contracts into the Company's operations; availability, terms and deployment of capital; the amount of net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. , if any, the Company may utilize in any year; and the ability of Steamboat steamboat: see steamship. steamboat or steamship Watercraft propelled by steam; more narrowly, a shallow-draft paddle-wheel steamboat widely used on rivers in the 19th century, particularly the Mississippi River and its tributaries. Industries LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and its subsidiary to control the Company's major corporate decisions. A further list and description of these risks, uncertainties, and other matters can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2005, in its periodic reports on Forms 10-Q and 8-K, and in its Registration Statement on Form S-1 (333-112652).
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share and per share data)
June 30, 2006 December 31, 2005
----------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 6,825 $ 10,777
Notes and accounts receivable,
net 37,097 40,707
Prepaid expenses and supplies 2,521 2,217
Deferred income taxes 1,961 1,961
----------------- -----------------
Total current assets 48,404 55,662
Leaseholds and equipment, net 16,814 17,416
Long-term receivables, net 5,280 4,953
Advances and deposits 1,153 1,330
Goodwill 119,136 118,781
Other assets, net 3,362 3,211
----------------- -----------------
Total assets $ 194,149 $ 201,353
================= =================
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 29,895 $ 31,174
Accrued and other current
liabilities 25,568 30,153
Current portion of long-term
borrowings 3,121 3,763
----------------- -----------------
Total current liabilities 58,584 65,090
Deferred income taxes 2,523 1,561
Long-term borrowings, excluding
current portion 82,075 88,345
Other long-term liabilities 23,920 21,944
Convertible redeemable preferred
stock, series D 18%, par value
$100 per share, 10 shares issued
and outstanding 1 1
Common stockholders' equity:
Common stock, par value $.001
per share; 12,100,000 shares
authorized; 10,052,462 shares
issued and outstanding as of
June 30, 2006 and common stock,
par value $.001 per share,
12,100,000 shares authorized;
10,126,482 shares issued and
outstanding as of December 31,
2005 10 10
Additional paid-in capital 185,269 187,616
Accumulated other comprehensive
income 229 419
Accumulated deficit (155,464) (163,633)
Treasury stock, at cost, 104,969
shares (2,998) --
----------------- -----------------
Total common stockholders'
equity 27,046 24,412
----------------- -----------------
Total liabilities and common
stockholders' equity $ 194,149 $ 201,353
================= =================
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except for share and per share data, unaudited)
Three Months Ended Six Months Ended
----------------------- -----------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Parking services
revenue:
Lease contracts $ 38,677 $ 39,140 $ 77,031 $ 77,867
Management contracts 26,220 23,315 51,457 45,132
----------- ----------- ----------- -----------
64,897 62,455 128,488 122,999
Reimbursement of
management contract
expense 82,897 84,903 170,937 167,435
----------- ----------- ----------- -----------
Total revenue 147,794 147,358 299,425 290,434
Cost of parking
services:
Lease contracts 34,862 35,330 69,666 70,701
Management contracts 11,212 9,578 21,235 18,757
----------- ----------- ----------- -----------
46,074 44,908 90,901 89,458
Reimbursed
management contract
expense 82,897 84,903 170,937 167,435
----------- ----------- ----------- -----------
Total cost of
parking services 128,971 129,811 261,838 256,893
Gross profit:
Lease contracts 3,815 3,810 7,365 7,166
Management contracts 15,008 13,737 30,222 26,375
----------- ----------- ----------- -----------
Total gross profit 18,823 17,547 37,587 33,541
General and
administrative
expenses 10,053 9,210 20,734 18,304
Depreciation and
amortization 1,525 1,493 2,970 2,957
Valuation allowance
related to long-term
receivables -- -- -- 900
----------- ----------- ----------- -----------
Operating income 7,245 6,844 13,883 11,380
Other expenses
(income):
Interest expense 2,194 2,463 4,380 4,847
Interest income (70) (77) (144) (154)
----------- ----------- ----------- -----------
2,124 2,386 4,236 4,693
Income before minority
interest and income
taxes 5,121 4,458 9,647 6,687
Minority interest 74 87 198 208
Income tax expense 682 108 1,280 125
----------- ----------- ----------- -----------
Net income $ 4,365 $ 4,263 $ 8,169 $ 6,354
=========== =========== =========== ===========
Common Stock Data:
Net income per common
share:
Basic $ 0.44 $ 0.41 $ 0.81 $ 0.61
Diluted $ 0.43 $ 0.40 $ 0.79 $ 0.60
Weighted average
common shares
outstanding:
Basic 10,006,370 10,288,457 10,064,119 10,372,806
Diluted 10,267,312 10,567,468 10,322,185 10,647,256
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except for share and per share data, unaudited)
Six Months Ended
----------------------------
June 30, 2006 June 30, 2005
------------- -------------
Operating activities:
Net income $ 8,169 $ 6,354
Adjustments to reconcile net loss to net
cash provided by (used in) operations:
Depreciation and amortization 2,712 2,881
Loss on sale of assets 258 76
Amortization of deferred financing costs 358 368
Amortization of carrying value in excess
of principal (96) (88)
Non-cash stock option compensation
expense 325 --
(Reversal) provision for losses on
accounts receivable (280) 147
Deferred income taxes 962 --
Valuation allowance related to long-term
receivables -- 900
Change in operating assets and
liabilities (306) (1,156)
------------- -------------
Net cash provided by operating activities 12,102 9,482
Investing activities:
Purchase of leaseholds and equipment (678) (408)
Contingent purchase payments (150) (171)
------------- -------------
Net cash used in investing activities (828) (579)
Financing activities:
Repurchase of common stock (5,997) (4,299)
Proceeds from exercise of stock options 327 14
Payments on senior credit facility (6,650) (3,800)
Payments on long-term borrowings (229) (126)
Payments on joint venture borrowings (369) (301)
Payments of debt issuance costs (617) (118)
Payments on capital leases (1,246) (1,670)
------------- -------------
Net cash used in financing activities (14,781) (10,300)
Effect of exchange rate changes on cash
and cash equivalents (445) (245)
------------- -------------
Decrease in cash and cash equivalents (3,952) (1,642)
Cash and cash equivalents at beginning of
period 10,777 10,360
------------- -------------
Cash and cash equivalents at end of period $ 6,825 $ 8,718
============= =============
Supplemental disclosures:
Cash paid during the period for:
Interest $ 4,694 $ 4,535
Income taxes 199 268
Supplemental disclosures of non-cash
activity:
Debt issued for capital lease obligation $ 2,050 $ 1,405
STANDARD PARKING CORPORATION
FREE CASH FLOW
(in thousands)
Three months ended Six months ended
------------------- -------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Operating income $7,245 $6,844 $13,883 $11,380
Depreciation and
amortization 1,525 1,493 2,970 2,957
Valuation allowance related
to long-term receivable - - - 900
Income tax paid (114) (93) (199) (268)
Minority interest (74) (87) (198) (208)
Change in assets and
liabilities 6,762 (3,920) (105) (989)
Capital expenditures and
contingent purchase
payments (356) (235) (828) (579)
--------- --------- --------- ---------
Operating cash flow $14,988 $4,002 $15,523 $13,193
Cash interest paid (1,340) (1,163) (4,694) (4,535)
--------- --------- --------- ---------
Free Cash Flow (1) $13,648 $2,839 $10,829 $8,658
Decrease (Increase) in cash
and cash equivalents (27) (821) 3,952 1,642
--------- --------- --------- ---------
Free cash flow, net of change
in cash $13,621 $2,018 $14,781 $10,300
(Uses)/Sources of cash:
(Payments) on senior credit
facility $(9,100) $400 $(6,650) $(3,800)
(Payments) on long-term
borrowings (1,025) (1,100) (1,844) (2,097)
(Payments) of debt issuance
costs (539) (36) (617) (118)
Proceeds from exercise of
stock options 41 14 327 14
(Repurchase) of common
stock (2,998) (1,296) (5,997) (4,299)
--------- --------- --------- ---------
Total (uses) of cash $(13,621) $(2,018) $(14,781) $(10,300)
----------------------------------------------------------------------
(1) Reconciliation of Free Cash Flow to Consolidated Statements of
Cash Flow
Six months Three months Three months
ended ended ended
June 30, March 31, June 30,
2006 2006 2006
------------ ------------ ------------
Net cash provided by
operating activities $12,102 $(1,879) $13,981
Net cash (used in)
investing activities (828) (472) (356)
Effect of exchange rate
changes on cash and cash
equivalents (445) (468) 23
------------ ------------ ------------
Free cash flow $10,829 $(2,819) $13,648
Six months Three months Three months
ended ended ended
June 30, March 31, June 30,
2005 2005 2005
------------ ------------ ------------
Net cash provided by
operating activities $9,482 $6,198 $3,284
Net cash (used in)
investing activities (579) (344) (235)
Effect of exchange rate
changes on cash and cash
equivalents (245) (35) (210)
------------ ------------ ------------
Free cash flow $8,658 $5,819 $2,839
STANDARD PARKING CORPORATION
LOCATION COUNT
June 30, 2006 December 31, 2005 June 30, 2005
--------------- ----------------- ---------------
Managed facilities 1,718 1,643 1,615
Leased facilities 263 263 289
--------------- ----------------- ---------------
Total facilities 1,981 1,906 1,904
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