CHICAGO, Aug. 5, 2009 (GLOBE NEWSWIRE) -- Standard Parking Corporation (Nasdaq:STAN), one of the nation's leading providers of parking management, ground transportation and other ancillary services, today announced second quarter 2009 earnings of $0.27 per share. Earnings per share of $0.29 in the 2008 second quarter included $0.06 per share attributable to the Company's settlement of its Hurricane Katrina claim. Excluding the Katrina proceeds, the Company's year-over-year growth in EPS was 17%. Year-to-date free cash flow of $4.6 million is in line with the Company's full-year expectation of $15 million to $20 million.
Comments
James A. Wilhelm, President and Chief Executive Officer, said, "We are pleased with the results of our 2009 first half despite the current economic environment, as the underlying business continues to perform well. Our location retention rate, one of our key management metrics, was unchanged from last quarter at 89%.
"Our business model, diversified in terms of geography and the sectors of the economy represented by our clients, is based predominantly on fixed-fee management contracts and has provided a measure of protection against economic downturns. However, we are currently experiencing some softness across our lease and reverse management portfolio in markets that tend to be more susceptible to discretionary consumer spending. Nevertheless, we remain very focused on our vision and strategic objectives and are well-positioned to continue to grow organically and pursue attractive market opportunities."
Second Quarter Operating Results
Revenue for the second quarter of 2009, excluding reimbursed management contract expense, decreased by $3.4 million to $73.0 million from $76.4 million in the year-ago period. While management contract revenue grew by almost 3%, leased location revenue decreased by 11% as travel-related locations continue to be adversely affected by reduced discretionary spending. The rate of decrease in paid exits at leased locations, however, has slowed during 2009, with the second quarter decrease at 10% as compared with 13% in the first quarter.
Gross profit in the 2009 second quarter was down by 15% to $20.1 million from $23.5 million a year ago. The Katrina settlement received in 2008 accounts for 7% of the year-over-year decline in gross profit. Certain other items, including an increase in bad debts, changes in insurance loss reserve estimates relating to prior years and certain legal-related expenses, collectively account for another 7% of the year-over-year decline in gross profit. Excluding all of the above items, year-over-year gross profit would have decreased 1%.
General and administrative expense ("G&A") decreased by 14% to $10.3 million from $12.0 million a year ago, reflecting the Company's continued focus on its cost structure, in this economic environment. The year-over-year decrease in second quarter G&A was achieved despite a 2008 second quarter that included a $0.4 million G&A reduction due to the Katrina settlement and a 2009 second quarter that included the cost attributable to the July 2008 restricted stock unit grant and $0.3 million relating to the transfer from the Company's former majority shareholder of its stake in the Company. The impact of these items, however, was more than offset by a reduction in certain compensation expenses in the second quarter of 2009.
As a result of the foregoing, operating income was $8.4 million, compared with $9.9 million a year ago. Lower interest rates were offset by higher borrowings under the revolving credit facility, due primarily to the stock repurchase program, resulting in a $0.4 million increase in interest expense during the 2009 second quarter.
Net income attributable to the Company was $4.2 million, or $0.27 per share, for the second quarter of 2009 versus $5.3 million, or $0.29 per share, for the same period of 2008. Excluding the $0.06 per share that the 2008 Katrina settlement contributed to that year's second quarter EPS, year-over-year EPS would have increased 17% in the second quarter of 2009. In addition, excluding all of the previously-discussed items that impacted the year-over-year results, second quarter 2009 EPS would have increased 30%.
While 2009 second quarter cash taxes paid increased by only $0.1 million, to $1.2 million from $1.1 million in the same period last year, the cash tax rate (cash taxes as a percent of pre-tax income) increased from 13% in the second quarter of 2008 to 17% in the second quarter of 2009.
The Company generated $6.0 million of free cash flow during the second quarter of 2009, as compared with $11.3 million generated in the second quarter of 2008. Of the differential, $2.0 million is attributable to the second quarter 2008 Katrina settlement, while the balance results primarily from timing and the economy's impact on working capital. The Company continues to expect free cash flow to be in a range of $15 - $20 million for the full year.
Recent Developments
Gameday, Click and Park(sm) Acquisition
In early July, the Company acquired the assets of Gameday Management Group, U.S., an Orlando-based company that operates transportation and parking systems for major stadium and sporting events. Gameday has provided its transportation and traffic management services for high-profile events including the 2002 Salt Lake City Winter Olympic Games, Super Bowls XXX-XLIV, the Daytona 500 and the 2009 Presidential Inauguration. The Company will be providing these services at the upcoming 2010 Vancouver Winter Olympic Games.
Wilhelm noted that "the acquisition will enable us to provide our stadium and special event clients with transportation and parking planning expertise that can meet their event-specific needs. We expect to leverage Gameday's stadium and special event traffic engineering services and front-end consulting expertise into other parking and transportation opportunities in the future."
Among the assets acquired was Gameday's Click and Park(sm) online parking and traffic management system, which enables parking customers to purchase reserved parking online in advance of a sporting or other special event. Wilhelm noted that "the Company's ability to enable special event attendees to purchase reserved parking over the Internet in advance of the event is a powerful example of how technology can be integrated within an ever-advancing parking industry. We look forward to applying this capability even more broadly within our industry."
Hartsfield-Jackson Atlanta International Airport
The Atlanta City Council approved a resolution authorizing the City to enter into a multi-year contract with the Company to manage the parking and shuttle operations at Hartsfield-Jackson Atlanta International Airport. The Airport has approximately 30,000 parking spaces and a fleet of almost 60 shuttle buses. The Company expects to commence its management duties at the Airport in the fourth quarter of this year.
Year-to-Date Results
Revenue for first six months of 2009, excluding reimbursed management contract expense, decreased by 3% to $146.0 million from $150.0 million in 2008.
Gross profit for the first half of 2009 decreased by 12% to $39.8 million from $45.2 million in the year-ago period. The year-over-year comparison was impacted by the receipt of $1.6 million in proceeds from the Company's settlement of its Hurricane Katrina insurance claim, which accounted for 3% of the year-over-year decrease in gross profit. Other specific factors, that have been discussed in the context of the second quarter, accounted for another 6% of the year-over-year decline in gross profit. The remaining 3% decline is largely attributable to the impact of the economic downturn on certain areas of the business that are more sensitive to discretionary spending than our predominant fixed-fee contract business.
General and administrative expenses for the first half of 2009 decreased 2% to $23.1 million from $23.4 million a year earlier despite the same three factors mentioned for the second quarter.
As a result of the foregoing, operating income for the first half of 2009 decreased by 27% to $13.8 million from $18.8 million in the same period of 2008.
Net income attributable to the Company decreased by 31% to $6.6 million for the first six months of 2009 as compared with $9.6 million for the first six months last year. On a per share basis, the year-over-year decrease was 19% because of fewer shares outstanding due to share repurchases. Excluding the $0.06 per share represented by the 2008 Katrina settlement, EPS for the first six months of 2009 decreased 9% as compared with 2008. Earnings per share would have increased by 20% for the first half of 2009 as compared to 2008 after adjusting for all of the above-mentioned items that affect the year-over-year comparison.
The Company generated $4.6 million of free cash flow during the first half of 2009 as compared with $14.2 million in the same period of 2008.
Affirms Full-Year Guidance
The Company is affirming its full-year earnings per share guidance in the range of $1.05 - $1.11. Because its initial guidance outlook excluded any costs associated with the transfer of shares by its former majority shareholder, the Company's affirmation of its guidance range continues to exclude these costs, which amounted to $0.04 per share in the first half of 2009. The Company does not expect to incur additional costs in connection with that transfer of shares. Free cash flow is expected to be in the range of $15 - $20 million.
Conference Call
The Company's quarterly earnings conference call will be held at 10:00 am (CT) on Thursday, August 6, 2009, and will be available live and in replay to all analysts/investors through a webcast service. To listen to the live call, individuals are directed to the Company's investor relations page at www.standardparking.com or www.earnings.com at least 15 minutes early to register, download 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, with nearly 12,000 employees, manages approximately 2,200 facilities, containing over one million parking spaces in more than 330 cities across the United States and Canada, including parking-related and shuttle bus operations serving approximately 60 airports.
More information about Standard Parking is available at www.standardparking.com. You should not construe the information on this website to be a part of this press release. Standard Parking's annual reports filed on Form 10-K, its quarterly reports on Form 10-Q, its current reports on Form 8-K and its Registration Statement on Form S-1 (333-112652) are available on the Internet 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 5, 2009. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments.
This document and tables 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," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will" and similar terms and phrases in connection with any discussion of future operating or financial performance. These forward-looking statements are made based on management's expectations and beliefs concerning future events affecting the Company and are subject to uncertainties and factors relating to the operations and business environment, all of which are difficult to predict and many of which are beyond management's control. These uncertainties and factors could cause actual results to differ materially from those matters expressed in or implied by these forward-looking statements. The following factors are among those that may cause actual results to differ materially from forward-looking statements: the recession and turmoil in the credit markets and financial services industry; changes in general economic and business conditions or demographic trends; the financial difficulties or bankruptcy of our major clients, including the impact on our ability to collect receivables; availability, terms and deployment of capital; potential impact on the market price of our common stock from the sale or offer of a substantial amount of our common stock by our largest shareholders; potential for change of control default under our credit agreement if an unaffiliated person obtains a majority of our common stock; the loss, or renewal on less favorable terms, of management contracts and leases; our ability to renew our insurance policies on acceptable terms, the extent to which our clients choose to obtain insurance coverage through us and our ability to successfully manage self-insured losses; seasonal trends, especially in the first quarter of the year; the impact of public and private regulations; our ability to form and maintain relationships with large real estate owners, managers and developers; integration of future acquisitions in light of challenges in retaining key employees, synchronizing business processes and efficiently integrating facilities, marketing and operations; the ability to obtain performance bonds on acceptable terms to guarantee our performance under certain contracts; extraordinary events affecting parking at facilities that we manage, including emergency safety measures, military or terrorist attacks and natural disasters; changes in federal and state regulations including those affecting airports, parking lots at airports or automobile use; the loss of key employees; and development of new, competitive parking-related services. A further list and description of these risks, uncertainties, and other matters can be found in the Company's Annual Reports on Form 10-K and in its quarterly reports on Form 10-Q and its current reports on Form 8-K.
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share data)
June 30,
2009 Dec. 31,
(Unaudited) 2008
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 10,521 $ 8,301
Notes and accounts receivable, net 43,459 45,198
Prepaid expenses and supplies 2,423 2,496
Deferred taxes 3,253 3,253
--------- ---------
Total current assets 59,656 59,248
Leasehold improvements, equipment and
construction in progress, net 17,825 17,542
Advances and deposits 3,799 4,433
Long-term receivables, net 8,220 6,680
Intangible and other assets, net 7,083 6,916
Cost of contracts, net 10,674 10,872
Goodwill 123,673 123,550
--------- ---------
Total assets $ 230,930 $ 229,241
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 46,566 $ 46,446
Accrued and other current liabilities 26,010 31,416
Current portion of long-term borrowings 789 1,068
--------- ---------
Total current liabilities 73,365 78,930
Deferred taxes 5,403 3,305
Long-term borrowings, excluding
current portion 125,796 123,996
Other long-term liabilities 21,597 22,052
Stockholders' equity:
Common stock, par value $.001 per share;
21,300,000 shares authorized;
15,272,757 and 16,110,781 shares issued
and outstanding as of June 30, 2009 and
December 31, 2008, respectively 15 16
Additional paid-in capital 89,625 103,541
Accumulated other comprehensive income 28 85
Treasury stock, at cost 627,423 shares
as of December 31, 2008 -- (11,161)
Accumulated deficit (84,838) (91,464)
--------- ---------
Total Standard Parking Corporation
stockholders' equity 4,830 1,017
Noncontrolling interest (61) (59)
--------- ---------
Total stockholders' equity 4,769 958
--------- ---------
Total liabilities and
stockholders' equity $ 230,930 $ 229,241
========= =========
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share data, unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Parking services
revenue:
Lease contracts $ 35,687 $ 40,003 $ 70,387 $ 77,697
Management
contracts 37,311 36,415 75,604 72,295
---------- ---------- ---------- ----------
72,998 76,418 145,991 149,992
Reimbursed
management
contract expense 97,595 99,317 200,152 198,768
---------- ---------- ---------- ----------
Total revenue 170,593 175,735 346,143 348,760
Cost of parking
services:
Lease contracts 32,932 34,711 65,881 69,604
Management
contracts 19,938 18,162 40,329 35,208
---------- ---------- ---------- ----------
52,870 52,873 106,210 104,812
Reimbursed
management
contract expense 97,595 99,317 200,152 198,768
---------- ---------- ---------- ----------
Total cost of
parking services 150,465 152,190 306,362 303,580
Gross profit:
Lease contracts 2,755 5,292 4,506 8,093
Management
contracts 17,373 18,253 35,275 37,087
---------- ---------- ---------- ----------
Total gross
profit 20,128 23,545 39,781 45,180
General and
administrative
expenses 10,320 12,029 23,081 23,440
Depreciation and
amortization 1,413 1,579 2,900 2,950
---------- ---------- ---------- ----------
Operating income 8,395 9,937 13,800 18,790
Other expenses
(income):
Interest expense 1,528 1,086 2,964 2,604
Interest income (95) (41) (162) (83)
---------- ---------- ---------- ----------
1,433 1,045 2,802 2,521
Income before
income taxes 6,962 8,892 10,998 16,269
Income tax expense 2,692 3,612 4,266 6,590
---------- ---------- ---------- ----------
Net income 4,270 5,280 6,732 9,679
Less: Net income
attributable to
noncontrolling
interest 42 3 106 125
---------- ---------- ---------- ----------
Net income
attributable to
Standard Parking
Corporation $ 4,228 $ 5,277 $ 6,626 $ 9,554
========== ========== ========== ==========
Common stock data:
Net income per share:
Basic $ 0.28 $ 0.29 $ 0.43 $ 0.53
Diluted $ 0.27 $ 0.29 $ 0.42 $ 0.52
Weighted average
shares outstanding:
Basic 15,251,310 17,891,155 15,273,796 18,007,316
Diluted 15,601,643 18,265,653 15,642,234 18,400,527
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Six Months Ended
----------------------
June 30, June 30,
2009 2008
--------- ---------
Operating activities:
Net income $ 6,732 $ 9,679
Adjustments to reconcile net income to
net cash provided by operations:
Depreciation and amortization 2,691 2,775
Loss on sale of assets 193 175
Amortization of debt issuance costs 321 142
Non-cash stock-based compensation 1,073 465
Excess tax benefit related to stock
option exercises -- (491)
Provision (reversal) for losses on
accounts receivable 143 (49)
Deferred income taxes 2,098 3,841
Change in operating assets
and liabilities (5,418) 614
--------- ---------
Net cash provided by operating activities 7,833 17,151
Investing activities:
Acquisitions -- (5,457)
Purchase of leaseholds improvements
and equipment (2,220) (2,515)
Cost of contracts purchased (604) (185)
Contingent purchase payments (259) (47)
--------- ---------
Net cash used in investing activities (3,083) (8,204)
Financing activities:
Repurchase of common stock (3,885) (12,926)
Proceeds from exercise of stock options -- 342
Tax benefit related to stock
option exercises -- 491
Proceeds from senior credit facility 2,150 7,450
Distribution to noncontrolling interest (108) (133)
Payments on long-term borrowings (59) (56)
Payments of debt issuance costs -- (35)
Payments on capital leases (571) (891)
--------- ---------
Net used in financing activities (2,473) (5,758)
Effect of exchange rate changes on cash
and cash equivalents (57) (60)
--------- ---------
Increase in cash and cash equivalents 2,220 3,129
Cash and cash equivalents at
beginning of period 8,301 8,466
--------- ---------
Cash and cash equivalents at
end of period $ 10,521 $ 11,595
========= =========
Supplemental disclosures:
Cash paid during the period for:
Interest $ 3,005 $ 2,806
Income taxes 1,770 1,614
STANDARD PARKING CORPORATION
FREE CASH FLOW
(in thousands, unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Operating income $ 8,395 $ 9,937 $ 13,800 $ 18,790
Depreciation and
amortization
expense 1,413 1,579 2,900 2,950
Non-cash
compensation 546 412 1,073 465
Income tax paid (1,176) (1,113) (1,770) (1,614)
Income
attributable to
noncontrolling
interest (42) (3) (106) (125)
Change in assets
and liabilities (7) 3,420 (5,224) (737)
Purchase of
leaseholds,
equipment and
cost of
contracts and
contingent
purchase
payments (1,624) (1,599) (3,083) (2,747)
---------- ---------- ---------- ----------
Operating cash flow $ 7,505 $ 12,633 $ 7,590 $ 16,982
Cash interest
paid (before
payment of debt
issuance) (1,459) (1,362) (3,005) (2,771)
---------- ---------- ---------- ----------
Free cash flow(1) $ 6,046 $ 11,271 $ 4,585 $ 14,211
(Increase) in
cash and cash
equivalents (733) (540) (2,220) (3,129)
---------- ---------- ---------- ----------
Free cash flow,
net of change
in cash $ 5,313 $ 10,731 $ 2,365 $ 11,082
Sources (Uses)
of cash:
(Payments)
Proceeds from
senior credit
facility ($ 5,000) ($ 5,400) $ 2,150 $ 7,450
(Payments) on
other borrowings (312) (463) (630) (947)
(Payments) of
debt issuance
costs -- (35) -- (35)
Proceeds from
exercise of
stock options -- 120 -- 342
Tax benefit
related to stock
option exercises -- 172 -- 491
(Repurchase) of
common stock (1) (5,127) (3,885) (12,926)
(Payments) on
acquisitions -- 2 -- (5,457)
---------- ---------- ---------- ----------
Total (uses) of cash ($ 5,313) ($ 10,731) ($ 2,365) ($ 11,082)
(1) Reconciliation of Free Cash Flow to Consolidated Statements of
Cash Flow
Six Three Three
Months Months Months
Ended Ended Ended
June 30, March 31, June 30,
2009 2009 2009
-------- -------- --------
Net cash provided by
operating activities $ 7,833 $ 284 $ 7,549
Net cash (used in)
investing activities (3,083) (1,459) (1,624)
Acquisitions -- -- --
Distribution to
noncontrolling interest (108) (52) (56)
Effect of exchange rate changes
on cash and cash equivalents (57) (234) 177
-------- -------- --------
Free cash flow $ 4,585 ($ 1,461) $ 6,046
Six Three Three
Months Months Months
Ended Ended Ended
June 30, March 31, June 30,
2008 2008 2008
-------- -------- --------
Net cash provided by
operating activities $ 17,151 $ 4,293 $ 12,858
Net cash (used in)
investing activities (8,204) (6,607) (1,597)
Acquisitions 5,457 5,459 (2)
Distribution to
noncontrolling interest (133) (149) 16
Effect of exchange rate changes on
cash and cash equivalents (60) (56) (4)
-------- -------- --------
Free cash flow $ 14,211 $ 2,940 $ 11,271
STANDARD PARKING CORPORATION
LOCATION COUNT
June 30, Dec. 31, June 30,
2009 2008 2008
-------- -------- --------
Managed facilities 1,919 1,986 1,979
Leased facilities 223 229 240
-------- -------- --------
Total facilities 2,142 2,215 2,219