Imperial Parking Corporation Announces First Quarter Earnings
VANCOUVER, British Columbia--May 15, 2001-- Imperial Parking Corporation (AMEX:IPK) today reported revenues of $18.1 million for the quarter ended March 31, 2001, representing a 23.4% increase over pro forma revenues of $14.6 million for the quarter ended March 31, 2000.The Company reported a net loss of $(0.4) million, or $(0.21) per share, for the first quarter, compared to a pro forma loss of $(0.1) million, or $(0.06) per share, in the prior year period.
Cash net income, defined as net income plus goodwill amortization, for the quarter totalled $0.2 million, or $0.10 per share, compared to pro forma cash net income of $0.4 million, or $0.18 per share, in the prior year period. The Company reported goodwill amortization of $0.6 million in the quarter ended March 31, 2001, compared to $0.5 million for the quarter ended March 31, 2000.
During the quarter cash and cash equivalents increased by $4.9 million from $5.6 million to $10.5 million. Cash generated from operating activities was $6.5 million, which includes $3.6 million in deferred revenue received for prepaid parking from San Francisco Giants season ticket holders.
The Company's increased revenues resulted primarily from new operations in San Francisco, Cincinnati and Cleveland which contributed approximately $2.4 million, and strong revenues in Canada which contributed $1.0 million more than in the prior year as a result of parking rate increases in select markets and a public transit strike in Calgary.
The Company's reduced net income and cash net income are primarily attributable to the seasonality of the Company's operation in San Francisco where it recorded losses at its San Francisco Giants facility of $0.5 million. The Company pays base rent for the San Francisco Giants parking operations evenly over the course of the year; however, baseball revenue is earned only in the second and third quarters, resulting in first quarter losses. It is expected that the annual income from the San Francisco Giants operation will meet or exceed the 2000 levels.
Although the Company also experienced operating losses in the quarter of $0.1 million in the new cities of New York and Cleveland, management expects that these cities will reach break-even later this year. The Company incurred additional general and administrative expenses in the quarter of $0.4 million resulting primarily from non-cash compensation expenses attributable to the Company's stock compensation plans, totalling $0.2 million, and the additional general and administrative costs in our new U.S. cities.
Commenting on Impark's first quarter, Charles Huntzinger, the Company's Chief Executive Officer and President, stated, "We are satisfied with our overall results for the quarter. While we experienced a reduction in net income and cash net income during the quarter, this reduction is attributable to the seasonality of operations at the San Francisco Giants facility and our expansion into two major U.S. cities. As we develop new cities, we expect that our operations will experience start-up losses until we reach critical mass in those markets. We remain enthusiastic about our U.S. expansion plans and believe that this strategy will yield strong long-term returns. Our U.S. revenues represented 27.0% of total revenues for the quarter compared to 15.5% in the prior year period. We believe that this represents significant progress towards achieving our stated goal of having our U.S. and Canadian operations contribute equal amounts of revenue to our operations within the next three to five years."
Mr. Huntzinger continued, "Our core operations exceeded expectations during the quarter. Our 'same store' parking operations, consisting of 1,237 locations operated since January 1, 2000, realized a 21% improvement in gross margins, posting a gross margin of $3.5 million during the quarter, compared to a gross margin of $2.9 million in the prior year period. When I joined Impark in 1999 the Company had many locations generating minimal or negative gross margins that required renegotiation or cancellation to increase profits. We believe this increase in same store gross margins is evidence our strategy has been successful."
Imperial Parking Corporation was spun-off from First Union Real Estate Equity and Mortgage Investments on March 27, 2000 and began trading on the American Stock Exchange on March 28, 2000. The spin-off was the result of a detailed plan of organization that included several transactions ultimately resulting in the combination of two entities to form Impark. Because Impark, as presently constituted, existed for just four days in the first quarter of 2000 and not at all in 1999, the Company presented its financial statements on a pro forma basis, assuming that the spin-off had occurred on January 1, 1999. The pro forma results of operations are not necessarily indicative of what the actual results of the Company would have been for the periods presented if the transactions had actually been consummated on January 1, 1999, nor do they purport to represent the Company's future results of operations. For further details on the spin-off, refer to Imperial Parking Corporation's Information Statement (Form 10) dated March 27, 2000.
Imperial Parking Corporation, headquartered in Vancouver, B.C., Canada is the largest parking operator in Canada and the fourth largest in North America. Impark currently operates more than 1,480 parking locations and 270,000 stalls in Canada and the United States.
This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurance can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected, as a result of certain factors. A discussion of these factors is included in the Company's filings with the Securities and Exchange Commission. -0
IMPERIAL PARKING CORPORATION
Consolidated Balance Sheet
In thousands of U.S. dollars
March 31, 2001
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 10,479
Restricted cash 2,600
Accounts receivable 3,417
Current portion of recoverable
development costs 951
Inventory 757
Deposits and prepaid expenses 666
Deferred income taxes 1,724
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Total current assets 20,594
Recoverable development costs 4,471
Fixed assets 13,741
Management and lease agreements 318
Other assets 2,617
Goodwill 38,872
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$ 80,613
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Rents payable $ 8,085
Trade accounts payable and
other accrued liabilities 4,174
Payable to employees and
former employees 1,662
Sales tax payable 1,445
Deferred revenue 5,227
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Total current liabilities 20,593
Other liabilities 1,634
Deferred income taxes 1,979
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Total liabilities 24,206
Stockholders' equity:
Common stock, $.01 par value;
1,812,142 shares issued and
outstanding 18
Additional paid - in capital 59,448
Retained earnings 1,088
Accumulated other comprehensive loss
Foreign currency translation adjustment (4,147)
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Total stockholders' equity 56,407
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$ 80,613
IMPERIAL PARKING CORPORATION
Consolidated and Pro forma Combined Statements of Operations
In thousands of U.S. dollars, except earnings per share
First Quarter Ended
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March 31, 2001 March 31, 2000
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(pro forma)
Revenues $ 18,060 $ 14,631
Direct costs 14,227 10,870
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Gross margin 3,833 3,761
Other operating expenses:
General and administrative 3,186 2,757
Depreciation and amortization 1,094 1,061
Equity share of Limited
Liability Corporation losses 50 --
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Total other operating expenses 4,330 3,818
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Operating income (loss) (497) (57)
Interest income 146 --
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Loss before income taxes (351) (57)
Income tax expense 25 61
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Net loss $ (376) $ (118)
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Earnings per share:
Basic and diluted $ (0.21) $ (0.06)
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Weighted average number
of shares outstanding 1,822,000 2,122,000
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Company Symbol:IPK
Imperial Parking Corporation (AMEX:IPK) is a leading provider of parking services in North America. Based in Vancouver, British Columbia, Imperial Parking owns, leases or manages over 1,480 parking facilities and lots in Canada and the United States, containing more than 270,000 parking spaces.