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Nov 2, 2011
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Standard Parking Corporation Reports 23% Increase in Third Quarter EPS; Expects Full-Year Earnings at Top End of Guidance Range

CHICAGO, Nov. 2, 2011 (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 third quarter 2011 results. The quarter's earnings per share was $0.37, an increase of 23% from the 2010 third quarter. Year-to-date earnings per share was $0.89, an increase of 16% from the first nine months of 2010. The Company expects full-year 2011 earnings per share to be in the range of $1.15 to $1.20. The Company generated $8.8 million of free cash flow in the first nine months of 2011, as compared to $12.8 million generated in the first nine months of 2010. The Company continues to expect full year free cash flow in excess of $20 million.

Comments

James A. Wilhelm, President and Chief Executive Officer, said, "I'm pleased to report a strong third quarter with results that were ahead of expectations. Revenues were up 2% overall and paid exits at same leased locations were also up 2%, metrics that continue to head in the right direction. The quarter's 5% increase in same location gross profit, coupled with a favorable adjustment in insurance loss reserve estimates, resulted in an overall 8% increase in third quarter gross profit. Our location retention improved slightly to 92% and operating profit retention remained steady at 96%. On the expense side, our G&A expense for the quarter increased slightly, by 2% over the third quarter of 2010. But for somewhat higher professional fees, the quarter's G&A would have been in line with the run rate for the first half of the year.

"Based on our nine-month results and expectations for the fourth quarter, we're raising the lower end of our full year guidance range, and now expect full year earnings per share to be in the range of $1.15 to $1.20. While this guidance range already reflects $0.03 per share of acquisition-related costs incurred to date, it excludes the impact of any prospective acquisitions on the fourth quarter."

Wilhelm concluded by stating, "Finally, in terms of free cash flow, we generated $8.8 million for the first nine months of the year. While increases in accounts receivable balances at several large airports have impacted free cash flow, these balances have been reduced significantly since the end of the third quarter and are expected to revert to normal levels by the end of the year. Accordingly, we continue to expect the year's free cash flow to exceed $20 million."

Recent Developments

Third quarter new business highlights include:

For the year-to-date through the end of October, the Company has repurchased $7.0 million of its common stock.

Nine-Month Results

Gross profit for the first nine months of 2011 increased by 3% to $66.4 million from $64.3 million for the same period of 2010, as same location gross profit growth of 6% was offset in part by certain anticipated location terminations.

G&A expense in the first nine months of 2011 decreased 2% to $34.6 million from $35.3 million a year earlier. Excluding acquisition-related costs, year—to-date G&A would have decreased by 4% from the year-ago period.

Net income attributable to the Company for the first nine months of 2011 increased by 17% to $14.3 million as compared with $12.2 million in the same period of 2010. On a per share basis, the year-over-year increase was 16%, up from $0.77 in 2010 to $0.89 in 2011. 

Updated 2011 Outlook

Based on year-to-date results, the Company is narrowing its full-year earnings per share guidance to a range of $1.15 to $1.20 from $1.10 to $1.20. The Company continues to expect full year free cash flow in excess of $20 million. This guidance excludes the prospective impact of any future acquisitions on the fourth quarter.

Conference Call 

The Company's quarterly earnings conference call will be held at 10:00 a.m. (Central Time) on Thursday, November 3, 2011 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 page at www.standardparking.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 the Standard Parking website and can be accessed for 30 days after the call.

Standard Parking is a leading national provider of parking facility management, ground transportation and other ancillary services. The Company, with approximately 12,000 employees, manages approximately 2,200 parking facilities, containing over one million parking spaces in hundreds of cities across North America, 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 the information on this website to be a part of this release. Standard Parking's annual reports filed on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K 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 November 2, 2011. 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: intense competition; the loss, or renewal on less favorable terms, of management contracts and leases; adverse litigation judgments or settlements; the loss of key employees; changes in general economic and business conditions or demographic trends; the impact of public and private regulations; the financial difficulties or bankruptcy of our major clients; insurance losses that are worse than expected or adverse events not covered by insurance; labor disputes; extraordinary events affecting parking at facilities that we manage, including emergency safety measures, military or terrorist attacks, cyber terrorism and natural disasters; state and municipal government clients that sell or enter into long-term leases of parking-related assets; uncertainty in the credit markets; availability, terms and deployment of capital; and our ability to obtain performance bonds on acceptable terms. 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 and per share data)
     
  September 30, 2011 December 31, 2010
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents  $ 7,619  $ 7,305
Notes and accounts receivable, net  54,318  52,167
Prepaid expenses and supplies  2,692  2,312
Deferred taxes  2,314  2,314
Total current assets  66,943  64,098
Leasehold improvements, equipment and construction in progress, net  16,630  16,839
Advances and deposits  5,205  5,172
Long-term receivables, net  13,842  12,789
Intangible and other assets, net  9,080  8,910
Cost of contracts, net  14,332  15,628
Goodwill  131,981  132,196
Total assets  $ 258,013  $ 255,632
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 41,750  $ 43,984
Accrued and other current liabilities  34,426  39,982
Current portion of long-term borrowings  706  673
Total current liabilities  76,882  84,639
Deferred taxes  12,494  9,637
Long-term borrowings, excluding current portion  93,445  97,229
Other long-term liabilities  27,567  27,324
Standard Parking Corporation's stockholders' equity:    
Preferred stock, par value $.01 per share; 5,000,000 shares authorized and no shares issued  —   — 
Common stock, par value $.001 per share; 50,000,000 shares authorized; 15,589,142 and 15,775,645 shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively  16  16
Treasury stock, at cost, 55,370 shares as of September 30, 2011 and no shares as of December 31, 2010  (866)  — 
Additional paid-in capital  95,141  97,291
Accumulated other comprehensive (loss) income  (362)  103
Accumulated deficit  (46,234)  (60,532)
Total Standard Parking Corporation stockholders' equity  47,695  36,878
Noncontrolling interest  (70)  (75)
Total equity  47,625  36,803
Total liabilities and stockholders' equity  $ 258,013  $ 255,632
 
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share data, unaudited)
         
   Three Months Ended   Nine Months Ended 
  September 30, 2011 September 30, 2010 September 30, 2011 September 30, 2010
Parking services revenue:        
Lease contracts  $ 37,501  $ 35,713  $ 109,899  $ 102,991
Management contracts  43,259  43,713  131,556  125,869
   80,760  79,426  241,455  228,860
Reimbursed management contract revenue  106,365  101,500  307,615  308,312
Total revenue  187,125  180,926  549,070  537,172
Cost of parking services:        
Lease contracts  34,049  32,714  101,834  95,702
Management contracts  22,489  24,357  73,196  68,899
   56,538  57,071  175,030  164,601
Reimbursed management contract expense  106,365  101,500  307,615  308,312
Total cost of parking services  162,903  158,571  482,645  472,913
Gross profit:        
Lease contracts  3,452  2,999  8,065  7,289
Management contracts  20,770  19,356  58,360  56,970
Total gross profit  24,222  22,355  66,425  64,259
General and administrative expenses   11,814  11,549  34,593  35,327
Depreciation and amortization  1,683  1,527  4,893  4,557
Operating income  10,725  9,279  26,939  24,375
Other expenses (income):        
Interest expense  1,197  1,286  3,546  4,174
Interest income  (297)  (56)  (470)  (161)
   900  1,230  3,076  4,013
Income before income taxes  9,825  8,049  23,863  20,362
Income tax expense  3,760  3,124  9,305  7,992
Net income  6,065  4,925  14,558  12,370
Less: Net income attributable to noncontrolling interest  89  89  260  181
Net income attributable to Standard Parking Corporation $5,976 $4,836 $14,298 $12,189
Common stock data:         
Net income per share:        
Basic $0.38 $0.31 $0.91 $0.79
Diluted $0.37 $0.30 $0.89 $0.77
Weighted average shares outstanding:        
Basic 15,704,837 15,651,586 15,776,833 15,526,061
Diluted 16,034,330 15,993,631 16,116,136 15,893,282
 
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except for share and per share data, unaudited)
     
  Nine Months Ended 
  September 30, 2011 September 30, 2010
Operating activities:    
Net income  $ 14,558  $ 12,370
Adjustments to reconcile net income to net cash provided by operations:    
Depreciation and amortization  4,935  4,545
 (Gain) loss on sale and abandonment of assets  (49)  50
Amortization of debt issuance costs  478  478
Non-cash stock-based compensation  1,724  1,770
Excess tax benefit related to stock option exercises  (148)  (1,185)
Provisions for losses on accounts receivable  33  102
Deferred income taxes  2,857  1,786
Change in operating assets and liabilities  (11,339)  (4,149)
Net cash provided by operating activities  13,049  15,767
Investing activities:    
Purchase of leasehold improvements and equipment  (2,907)  (2,168)
Cost of contracts purchased  (395)  (522)
Proceeds from sale of assets  82  3
Capitalized interest  (40)  (107)
Contingent purchase payments  (293)  (104)
Net cash used in investing activities  (3,553)  (2,898)
Financing activities:    
Proceeds from exercise of stock options  143  1,450
Repurchase of common stock  (5,031)  — 
Tax benefit related to stock option exercises  148  1,185
Earn-out payment  —   (529)
Payments on senior credit facility  (3,250)  (15,200)
Distribution to noncontrolling interest  (255)  (179)
Payments on long-term borrowings  (102)  (95)
Payments on debt issuance costs  (30)  (30)
Payments on capital leases  (399)  (404)
Net cash used in financing activities  (8,776)  (13,802)
Effect of exchange rate changes on cash and cash equivalents  (406)  81
Increase (decrease) in cash and cash equivalents  314  (852)
Cash and cash equivalents at beginning of period  7,305  8,256
Cash and cash equivalents at end of period  $ 7,619  $ 7,404
Supplemental disclosures:    
Cash paid during the period for:    
Interest  $ 3,151  $ 3,975
Income taxes  4,975  4,925

The Company defines free cash flow as net cash from operating activities, less cash used for investing activities (exclusive of acquisitions), plus the effect of exchange rate changes on cash and cash equivalents. Due to the adoption, effective January 1, 2009, of Financial Accounting Standards Board Accounting Standards Codification Topic 810, Consolidation (formerly FAS 160), the calculation of Free Cash Flow has been modified to deduct for the distribution to noncontrolling interest, which was previously reported as part of net cash from operating activities.        

STANDARD PARKING CORPORATION
FREE CASH FLOW
(in thousands, unaudited)
  Three Months Ended Nine Months Ended
  September 30, 2011 September 30, 2010 September 30, 2011 September 30, 2010
Operating income  $ 10,725  $ 9,279  $ 26,939  $ 24,375
Depreciation and amortization expense  1,683  1,527  4,893  4,557
Non-cash compensation  411  533  1,724  1,770
Income tax paid  (1,283)  (1,893)  (4,975)  (4,925)
Income attributable to noncontrolling interest  (89)  (89)  (260)  (181)
Change in assets and liabilities  (16,415)  5,685  (12,730)  (5,979)
Purchase of leaseholds, equipment and cost of contracts and contingent purchase payments  (1,260)  (1,045)  (3,635)  (2,901)
Operating cash flow ($6,228)  $13,997  $11,956  $16,716
Cash interest paid (before payment of debt issuance)   (1,016)  (1,254)  (3,121)  (3,945)
Free cash flow (1) ($7,244)  $ 12,743  $ 8,835  $ 12,771
Decrease (increase) in cash and cash equivalents 4,166  878  (314)  852
Free cash flow, net of change in cash ($3,078) $13,621 $8,521 $13,623
         
Sources (Uses) of cash:        
Draw (payments) on senior credit facility $7,950 ($13,500) ($3,250) ($15,200)
(Payments) on other borrowings  (170)  (160)  (501)  (499)
(Payments) of debt issuance costs  (30)  (30)  (30)  (30)
Proceeds from exercise of stock options  --   381  143  1,450
Tax benefit related to stock option exercises  (72)  217  148  1,185
(Repurchase) of common stock  (4,600)  --   (5,031)  -- 
(Payments) on earn-out  --   (529)  --   (529)
(Payments) on acquisitions --  --  --  -- 
Total (uses) of cash $3,078 ($13,621) ($8,521) ($13,623)
 
 
(1) Reconciliation of Free Cash Flow to Consolidated Statements of Cash Flow
  Nine Months Ended September 30, 2011 Six Months Ended June 30, 2011 Three Months Ended September 30, 2011
Net cash provided by operating activities  $ 13,049  $ 18,502 ($5,453)
Net cash (used in) investing activities  (3,553)  (2,296)  (1,257)
Acquisitions  --   --   -- 
Distribution to noncontrolling interest  (255)  (174)  (81)
Effect of exchange rate changes on cash and cash equivalents  (406)  47  (453)
Free cash flow $8,835 $16,079 ($7,244)
       
       
  Nine Months Ended September 30, 2010 Six Months Ended June 30, 2010 Three Months Ended September 30, 2010
Net cash provided by operating activities  $ 15,767  $ 2,003  $ 13,764
Net cash (used in) investing activities  (2,898)  (1,856)  (1,042)
Acquisitions  --   --   -- 
Distribution to noncontrolling interest  (179)  (85)  (94)
Effect of exchange rate changes on cash and cash equivalents  81  (34)  115
Free cash flow $12,771 $28 $12,743
       
       
       
       
STANDARD PARKING CORPORATION
LOCATION COUNT
       
  September 30, 2011 December 31, 2010 September 30, 2010
Managed facilities 1,970 1,907 1,959
Leased facilities 212 212 211
Total facilities 2,182 2,119 2,170
       
       
Definition: The Company's year over year same location gross profit statistic does not include the results of the Other segment which consists of ancillary revenue and insurance reserve adjustments related to prior years which are not specifically identifiable to an operating location.
CONTACT: G. MARC BAUMANN

         Executive Vice President and

         Chief Financial Officer

         Standard Parking Corporation

         (312) 274-2199

         mbaumann@standardparking.com