Central Parking Corporation Reports Fiscal Third Quarter Results
NASHVILLE, Tenn.--Aug. 3, 2005--Central Parking Corporation today announced earnings from continuing operations for the third quarter ended June 30, 2005, of $5.3 million, or $0.14 per fully diluted share, compared with $6.6 million, or $0.18 per fully diluted share, earned in the third quarter of the previous fiscal year. Earnings from continuing operations for the quarter were reduced by pre-tax property-related losses of $3.3 million, which included $2.8 million in charges resulting from the renegotiation of an unprofitable lease, partially offset by a gain of $2.1 million from the sale of real estate. The lease, which had operating losses of approximately $700,000 in fiscal 2004 and a term through 2013, is now profitable under the renegotiated terms.Net earnings for the third quarter of fiscal 2005 were $4.9 million, or $0.13 per fully diluted share, compared with net earnings of $6.0 million, or $0.16 per fully diluted share, in the quarter ended June 30, 2004. Total revenues for the quarter increased 6.6% to $310.5 million, while revenues excluding reimbursed management expenses declined 3.6% to $171.3 million.
Earnings from continuing operations for the nine months ended June 30, 2005, were $17.6 million, or $0.48 per fully diluted share, compared with $18.8 million, or $0.52 per share in the year-earlier period. Net earnings for the first nine months of fiscal 2005 were $14.6 million, or $0.40 per diluted share, compared with $17.9 million, or $0.49 per fully diluted share, in the year-earlier period. Total revenues increased 4.2% to $907.7 million, while revenues excluding reimbursed management expenses declined 4.3% to $508 million.
"The results for the third quarter were consistent with our expectations," said Monroe J. Carell, Jr., Chairman and Chief Executive Officer. "Operating fundamentals were positive for the quarter, with a net increase in new locations and same-store-sales growth of 1.9 percent. We also made further progress in lowering debt during the quarter as cash flow from operations and proceeds from property sales were used to reduce indebtedness by $8.7 million.
"Net earnings for the quarter were negatively affected by approximately $1.1 million in costs related to the Company's Sarbanes Oxley compliance initiative, approximately $800,000 in costs related to the terminated discussions regarding the potential sale of the Company and approximately $200,000 in severance costs. Third quarter earnings also were reduced by the successful renegotiation of an unprofitable lease (described above) as we continued our efforts to improve future operating results.
"Due primarily to the previously announced sale of a leasehold interest in a garage at 839 Sixth Avenue in New York City, which will result in an after-tax property-related gain in the Company's fourth fiscal quarter of approximately $23 million, or $0.62 per diluted share, we are revising our earnings guidance for continuing operations, including property-related gains or losses, for fiscal 2005, to a range of $1.15 to $1.25 per share," Carell concluded.
A conference call regarding this release is scheduled tomorrow, August 4, 2005, 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 rebroadcast of the call at www.parking.com or www.earnings.com.
Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading global provider of parking and transportation management services. As of June 30, 2005 the Company operated more than 3,400 parking facilities containing more than 1.5 million spaces at locations in 37 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Mexico, Chile, Peru, Colombia, Venezuela, Germany, Switzerland, Poland, Spain, Greece and Italy.
This press release contains historical and forward-looking information. The words "guidance," "expect", "expects,' "expected," expectations," "estimates," "anticipates," "guidance," "goal," "outlook," "assumptions," "intend," "plan," "continue to expect," "should," "believe," "project," "objective," "outlook," "forecast," "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, the Company's ability to maintain reduced operating costs, reduce indebtedness and sell real estate at projected values as well as continued improvement in same store sales, which is dependent on improvements in general economic conditions and office occupancy rates; 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; changes in demand due to weather patterns and special events including sports events and strikes; 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 the impact of claims and litigation; and increased regulation or taxation of parking operations and real estate.
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, 2004, and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, filed with the Securities and Exchange Commission and other filings 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 Operations
(Unaudited)
Amounts in thousands, except per share data
QTD ended June 30, YTD ended June 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenues:
Parking $ 139,356 $ 145,661 $ 416,603 $ 436,547
Management contracts 31,933 31,957 91,477 94,612
---------- ---------- ---------- ----------
171,289 177,618 508,080 531,159
Reimbursement of
management contract
expenses 139,163 113,590 399,585 340,149
---------- ---------- ---------- ----------
Total revenues 310,452 291,208 907,665 871,308
Costs and expenses:
Cost of parking 124,798 131,655 378,726 393,873
Cost of management
contracts 12,524 13,208 42,815 41,334
General and
administrative 20,412 17,598 60,160 53,693
---------- ---------- ---------- ----------
157,734 162,461 481,701 488,900
Reimbursed management
contract expenses 139,163 113,590 399,585 340,149
---------- ---------- ---------- ----------
Total costs and
expenses 296,897 276,051 881,286 829,049
Property-related (loss)
gains, net (1,171) 1,462 15,464 5,997
---------- ---------- ---------- ----------
Operating earnings 12,384 16,619 41,843 48,256
Other income (expenses):
Interest income 1,177 1,217 3,361 3,642
Interest expense (4,303) (4,834) (14,217) (15,235)
Equity in partnership
and joint venture
earnings (93) (402) (545) (2,389)
---------- ---------- ---------- ----------
Earnings from continuing
operations before
minority interest and
income taxes 9,165 12,600 30,442 34,274
Minority interest (475) (833) (1,183) (2,595)
---------- ---------- ---------- ----------
Earnings from continuing
operations before income
taxes 8,690 11,767 29,259 31,679
Income tax expense (3,411) (5,156) (11,709) (12,877)
---------- ---------- ---------- ----------
Earnings from continuing
operations 5,279 6,611 17,550 18,802
---------- ---------- ---------- ----------
Discontinued operations,
net of tax (399) (643) (2,925) (904)
---------- ---------- ---------- ----------
Net earnings $ 4,880 $ 5,968 $ 14,625 $ 17,898
========== ========== ========== ==========
Basic earnings (loss)
per share:
Earnings from continuing
operations $ 0.14 $ 0.18 $ 0.48 $ 0.52
Discontinued operations,
net of tax (0.01) (0.02) (0.08) (0.03)
---------- ---------- ---------- ----------
Net earnings $ 0.13 $ 0.16 $ 0.40 $ 0.49
========== ========== ========== ==========
Diluted earnings (loss)
per share:
Earnings from continuing
operations $ 0.14 $ 0.18 $ 0.48 $ 0.52
Discontinued operations,
net of tax (0.01) (0.02) (0.08) (0.03)
---------- ---------- ---------- ----------
Net earnings $ 0.13 $ 0.16 $ 0.40 $ 0.49
========== ========== ========== ==========
Weighted average shares
used for basic per
share data 36,663 36,435 36,603 36,277
Effect of dilutive
common stock options 220 300 139 211
---------- ---------- ---------- ----------
Weighted average shares
used for dilutive per
share data 36,883 36,735 36,742 36,488
========== ========== ========== ==========
Central Parking Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
Amounts in thousands
June 30, September 30,
2005 2004
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 27,585 $ 27,628
Management accounts receivable 54,442 43,776
Accounts receivable - other 14,877 14,594
Current portion of notes receivable 3,757 6,010
Prepaid expenses 13,131 13,045
Assets held for sale 39,306 23,724
Refundable income taxes 3,120 1,461
Deferred income taxes 11,119 11,177
------------- -------------
Total current assets 167,337 141,415
Notes receivable, less current portion 39,175 41,940
Property, equipment and leasehold
improvements, net 345,229 380,256
Contract and lease rights, net 81,992 89,015
Goodwill, net 234,329 232,562
Investment in and advances to partnerships
and joint ventures 6,786 7,824
Other assets 37,037 36,616
------------- -------------
Total Assets $ 911,885 $ 929,628
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capital lease obligations $ 5,562 $ 46,867
Accounts payable 76,373 82,224
Accrued expenses 52,414 46,807
Management accounts payable 27,227 24,640
------------- -------------
Total current liabilities 161,576 200,538
Long-term debt and capital lease
obligations, less current portion 161,206 159,188
Subordinated debentures 78,085 78,085
Deferred rent 22,490 24,450
Deferred income taxes 14,168 17,293
Other liabilities 21,009 14,977
------------- -------------
Total liabilities 458,534 494,531
------------- -------------
Minority interest 537 64
Shareholders' equity:
Common stock 367 366
Additional paid-in capital 251,184 249,452
Accumulated other comprehensive income,
net 3,953 879
Retained earnings 198,015 185,041
Other (705) (705)
------------- -------------
Total shareholders' equity 452,814 435,033
------------- -------------
Total Liabilities and Shareholders' Equity $ 911,885 $ 929,628
============= =============
Central Parking Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Amounts in thousands
YTD June 30, YTD June 30,
2005 2004
------------- -------------
Cash flows from operating activities:
Net earnings $ 14,625 $ 17,898
Loss from discontinued operations 2,925 904
------------- -------------
Earnings from continuing operations 17,550 18,802
Adjustments to reconcile earnings from
continuing operations to net cash
provided by operating activities -
continuing operations:
Depreciation and amortization 21,506 24,781
Equity in partnership and joint venture
earnings 545 2,389
Distributions from partnerships and
joint ventures 1,393 1,237
Property-related gains, net (15,464) (5,997)
Deferred income taxes (3,555) 4,346
Minority interest, net of tax 1,183 2,595
Changes in operating assets and
liabilities:
Management accounts receivable (10,843) (7,882)
Accounts receivable - other (296) 6,098
Prepaid expenses (125) (3,981)
Other assets (5,447) (7,478)
Accounts payable, accrued expenses and
other liabilities 5,493 (13,319)
Management accounts payable 2,565 3,443
Deferred rent (1,960) (2,296)
Refundable income taxes (1,658) 4,246
Income taxes payable 51 -
------------- -------------
Net cash provided by operating
activities - continuing operations 10,938 26,984
Net cash (used) provided by
operating activities - discontinued
operations (2,282) 1,689
------------- -------------
Net cash provided by operating
activities 8,656 28,673
------------- -------------
Cash flows from investing activities:
Proceeds from disposition of property
and equipment 35,951 62,026
Purchase of equipment and leasehold
improvements (8,921) (10,442)
Purchase of property - (1,725)
Purchase of contracts and lease rights - (4,530)
Other investing activities 3,921 4,248
------------- -------------
Net cash provided by investing
activities 30,951 49,577
------------- -------------
Cash flows from financing activities:
Dividends paid (1,651) (1,647)
Net borrowings (repayments) under
revolving credit agreement 71,126 (59,000)
Proceeds from issuance of notes payable,
net of issuance costs 9,728 1,864
Principal repayments on long-term debt
and capital lease obligations (120,195) (21,382)
Payment to minority interest partners (392) (3,224)
Proceeds from issuance of common stock
and exercise of stock options 1,733 2,904
------------- -------------
Net cash used by financing activities (39,651) (80,485)
------------- -------------
Foreign currency translation 1 651
------------- -------------
Net decrease in cash and cash equivalents (43) (1,584)
Cash and cash equivalents at beginning of
period 27,628 31,572
------------- -------------
Cash and cash equivalents at end of period $ 27,585 $ 29,988
============= =============
Key Financial Metrics
(Includes continuing and discontinued operations)
(In thousands)
QTD Ended June 30, YTD Ended June 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net earnings $ 4,880 $ 5,968 $ 14,625 $ 17,898
Interest expense 4,303 4,838 14,223 15,268
Income tax expense 3,123 4,728 9,824 12,273
Depreciation/amortization 6,541 7,589 20,193 23,380
Minority interest 475 778 1,268 2,435
---------- ---------- ---------- ----------
EBITDA $ 19,322 $ 23,901 $ 60,133 $ 71,254
========== ========== ========== ==========
In addition to disclosing financial results prepared in accordance
with U.S. generally accepted accounting principles, the Company
discloses information regarding EBITDA. EBITDA is a non-GAAP financial
measure defined as earnings before interest, taxes,
depreciation/amortization and minority interest. The Securities and
Exchange Commission ("SEC") adopted new rules concerning the use of
non-GAAP financial measures. As required by the SEC, the Company
provides the above 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.