Central Parking Corporation Reports Improved Fiscal First Quarter Results
NASHVILLE, Tenn.--Jan. 2, 20048, 2004--Central Parking Corporation today announced that earnings from continuing operations for the first quarter ended December 31, 2003 increased to $9.6 million, or $0.27 per diluted share from $5.2 million, or $0.14 per diluted share in the first fiscal quarter of the previous year. Net earnings for the first quarter of fiscal 2004 were $8.4 million, or $0.23 per diluted share compared with net earnings of $6.9 million, or $0.19 per diluted share for the quarter ended December 31, 2002. Total revenues, excluding reimbursed management costs, for the first quarter of 2004 increased 2.9% to $184.9 million from $180.0 million in the year-earlier period."We were pleased with our results for the first quarter as we continued to see positive trends in comparable sales, lower expenses and reduced debt," said Monroe J. Carell, Jr., Chairman and Chief Executive Officer. "Revenues for the first quarter increased over the prior year period primarily due to an increase in comparable sales in the New York market.
"Progress was made in our efforts to reduce the size of Central Parking's cost structure," Mr. Carell continued. "We recognize that to be successful, we must continue to leverage our fixed costs and the first quarter results reflect better expense trends. When measured as a percent of revenues - cost of parking, cost of management agreements and general and administrative expenses - all improved on a year over year basis."
The Company reduced its long-term debt by more than $38 million in the quarter. The debt reduction was a result of successful property sales, the conversion of the Connex rail contract in the United Kingdom from a lease contract to a management agreement, increased cash flow from operations and reduced capital expenditures. The Company intends to focus on continued reductions in its debt balances throughout the remainder of 2004.
"The first quarter results represent a strong start for fiscal 2004. Office occupancy rates in many central business districts have begun to firm as the economy is showing signs of improvement. Although there are still many unknowns that could affect our results, we believe our success to date in the various strategies to improve profitability should produce stronger than expected earnings in fiscal 2004. As a result, we are increasing our earnings guidance for fiscal 2004. Based on our current outlook, we expect earnings from continuing operations, excluding property-related gains or losses, to be in the range of $0.55 to $0.65 per share, compared with our prior guidance of $0.45 to $0.55 per share," Carell concluded.
A conference call regarding this release is scheduled for Thursday, January 29, 2004, beginning at 10:00 a.m. (ET). Investors and other interested parties may listen to the teleconference by accessing the online, real-time webcast and broadcast of the call at www.parking.com or www.fulldisclosure.com.
Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading global provider of parking and transportation management services. The Company operates approximately 3,700 parking facilities containing more than 1.6 million spaces at locations in 38 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Mexico, Chile, Peru, Colombia, Venezuela, Germany, Switzerland, Poland, Spain and Greece.
This press release contains historical and forward-looking information. The words "believe," "anticipate," "project," "plan," "expect," "estimate," "objective," "outlook," "assumptions," "guidance," "forecast," "goal," "intend," "will likely result," or "will continue" and similar expressions identify forward looking statements. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in the forward-looking statements. The factors that may result in actual results differing from such forward-looking information include, but are not limited to: the Company's ability to achieve the goals described in this release and other communications, including but not limited to, continued reduction in operating costs and the Company's indebtedness, as well as continued improvement in same store sales, which is dependent on improvements in general economic conditions; the loss or renewal on less favorable terms, of management contracts and leases; the timing of pre-opening, start-up and break-in costs of parking facilities; the Company's ability to cover the fixed costs of its leased and owned facilities and its overall ability to maintain adequate liquidity through its cash resources and credit facilities; the Company's ability to comply with the terms of the Company's credit facilities (or obtain waivers for non-compliance); interest rate fluctuations; acts of war or terrorism; temporary changes in demand due to weather patterns; higher premium and claims costs relating to the Company's insurance programs, including medical, liability and workers' compensation; the Company's ability to renew and obtain performance and surety bonds on favorable terms; and the impact of litigation, including but not limited to, the securities class action lawsuits pending against the Company; and increased regulation or taxation of parking operations.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release or to reflect the occurrence of unanticipated events. We have provided additional information in our Annual Report on Form 10-K for our fiscal year ended September 30, 2003 filed with the Securities and Exchange Commission, which readers are encouraged to review, concerning other factors that could cause actual results to differ materially from those indicated in the forward-looking statements.
Central Parking Corporation and Subsidiaries
Consolidated Statements of Earnings
(Unaudited)
Amounts in thousands, except per share data
Three Months Ended
December 31,
2003 2002
-------- --------
Revenues:
Parking $151,837 $149,358
Management contracts 33,070 30,423
-------- --------
184,907 179,781
Reimbursement of management contract expenses 112,723 101,981
-------- --------
Total revenues 297,630 281,762
Costs and expenses:
Cost of parking 133,178 132,990
Cost of management contracts 14,375 14,610
General and administrative 18,830 20,657
Non-compete amortization 11 93
-------- --------
166,394 168,350
Reimbursed management contract expenses 112,723 101,981
-------- --------
Total costs and expenses 279,117 270,331
Property-related gains, net 1,243 122
-------- --------
Operating earnings 19,756 11,553
Other income (expenses):
Interest income 1,248 1,200
Interest expense (4,269) (2,954)
Interest expense -subordinated convertible
debentures (1,045) (1,045)
Equity in partnership and joint venture earnings 547 669
-------- --------
Earnings from continuing operations before
minority interest and income taxes 16,237 9,423
Minority interest, net of tax (1,013) (1,286)
-------- --------
Earnings from continuing operations before
income taxes 15,224 8,137
Income tax expense (5,605) (2,962)
-------- --------
Earnings from continuing operations 9,619 5,175
-------- --------
Discontinued operations, net of tax (1,224) 1,691
-------- --------
Net earnings $ 8,395 $ 6,866
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Basic earnings per share:
Earnings from continuing operations $ 0.27 $ 0.14
Discontinued operations, net of tax (0.03) 0.05
-------- --------
Net earnings $ 0.23 (a) $ 0.19
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Diluted earnings per share:
Earnings from continuing operations $ 0.27 $ 0.14
Discontinued operations, net of tax (0.03) 0.05
-------- --------
Net earnings $ 0.23 (a) $ 0.19
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Weighted average shares used for basic per
share data 36,159 35,969
Effect of dilutive common stock options 46 314
-------- --------
Weighted average shares used for dilutive per
share data 36,205 36,283
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(a) Figures are not additive due to rounding.
Central Parking Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
Amounts in thousands
December 31, September 30,
2003 2003
------------ -------------
ASSETS
Current assets:
Cash and cash equivalents $ 38,171 $ 31,572
Management accounts receivable 35,808 34,174
Accounts receivable - other 10,661 15,440
Current portion of notes receivable 5,199 8,220
Prepaid expenses 17,524 11,424
Assets held for sale 33,062 39,417
Refundable income taxes 1,696 5,483
----------- ------------
Total current assets 142,121 145,730
Notes receivable, less current portion 41,227 40,879
Property, equipment and leasehold
improvements, net 386,707 414,265
Contract and lease rights, net 95,144 102,315
Goodwill, net 230,312 230,312
Investment in and advances to partnerships
and joint ventures 13,495 13,649
Other assets 46,012 42,297
----------- ------------
Total Assets $ 955,018 $ 989,447
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 3,215 $ 3,623
Accounts payable 81,128 80,128
Accrued expenses 42,765 43,661
Management accounts payable 21,092 22,392
----------- ------------
Total current liabilities 148,200 149,804
Long-term debt and capital lease
obligations, less current portion 228,792 266,961
Subordinated convertible debentures 78,085 78,085
Deferred rent 26,822 27,569
Deferred income taxes 3,431 3,010
Other liabilities 15,689 16,303
----------- ------------
Total liabilities 501,019 541,732
----------- ------------
Minority interest 29,231 31,189
Shareholders' equity:
Common stock 362 362
Additional paid-in capital 246,979 246,559
Accumulated other comprehensive income, net 48 78
Retained earnings 178,084 170,232
Other (705) (705)
----------- ------------
Total shareholders' equity 424,768 416,526
----------- ------------
Total Liabilities and Shareholders' Equity $ 955,018 $ 989,447
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Central Parking Corporation and Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)
Amounts in thousands
Three Months Ended
December 31,
2003 2002
--------- ---------
Cash flows from operating activities:
Net earnings $ 8,395 $ 6,866
Loss (earnings) from discontinued operations 1,224 (1,691)
-------- --------
Earnings from continuing operations 9,619 5,175
Adjustments to reconcile earnings from
continuing operations to net cash provided by
operating activities - continuing operations:
Depreciation and amortization 8,841 8,123
Equity in partnership and joint venture earnings (547) (675)
Distributions from partnerships and joint
ventures 338 274
Property-related losses (gains), net 186 (2,324)
Deferred income taxes 9 (1,476)
Minority interest, net of tax 1,013 1,286
Changes in operating assets and liabilities:
Management accounts receivable (1,634) (5,989)
Accounts receivable - other 4,779 2,219
Prepaid expenses (6,100) (5,920)
Other assets (5,877) 2,531
Accounts payable, accrued expenses and other
liabilities (4,569) (1,892)
Management accounts payable (1,300) (1,428)
Deferred rent (747) 177
Refundable income taxes 3,787 -
Income taxes payable - 1,910
-------- --------
Net cash provided by operating activities -
continuing operations 7,798 1,991
Net cash (used) provided by operating activities
- discontinued operations (1,224) 1,691
-------- --------
Net cash provided by operating activities 6,574 3,682
-------- --------
Cash flows from investing activities:
Proceeds from disposition of property and
equipment 43,695 9,217
Purchase of property, equipment and leasehold
improvements (4,334) (23,118)
Purchase of contract and lease rights - (7,414)
Other investing activities 2,926 8,922
-------- --------
Net cash provided (used) by investing activities 42,287 (12,393)
-------- --------
Cash flows from financing activities:
Dividends paid (543) (538)
Net (repayments) borrowings under revolving
credit agreement (28,563) 7,000
Proceeds from issuance of notes payable, net of
issuance costs 2,025 9,970
Principal repayments on long-term debt and
capital lease obligations (12,039) (13,214)
Payment to minority interest partners (2,842) (3,080)
Proceeds from issuance of common stock and
exercise of stock options 420 254
-------- --------
Net cash (used) provided by financing activities (41,542) 392
-------- --------
Foreign currency translation (720) (214)
-------- --------
Net increase (decrease) in cash and cash
equivalents 6,599 (8,533)
Cash and cash equivalents at beginning of period 31,572 33,498
-------- --------
Cash and cash equivalents at end of period $ 38,171 $ 24,965
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In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses information regarding EBITDA. EBITDA is a non-GAAP financial measure defined as earnings before interest, taxes, depreciation/ amortization, minority interest, and cumulative effect in accounting changes. The Securities and Exchange Commission ("SEC") adopted rules concerning the use of non-GAAP financial measures. As required by the SEC, the Company provides the following reconciliation to net earnings which is the most directly comparable GAAP measure. The Company presents EBITDA as it is a common alternative measure of performance which is used by management as well as investors when analyzing the financial position and operating performance of the Company. As EBITDA is a non-GAAP financial measure, it should not be considered in isolation or as a substitute for net earnings or any other GAAP measure. Because EBITDA is not calculated in the same manner by all companies, the Company's definition of EBITDA may not be consistent with that of other companies.
Three Months Ended December 31,
2003 2002
------------------ -----------------
(In thousands)
Net earnings $8,395 $6,866
Interest expense 5,314 3,999
Income tax expense 4,843 4,088
Depreciation/amortization 8,387 7,837
Minority interest, net of tax 1,013 1,286
------------------ -----------------
EBITDA $27,952 $24,076
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