Revisions to Previously Issued Consolidated Financial Statements | 6 Months Ended |
Jun. 30, 2013 |
Revision to Previously Issued Financial Statements | ' |
Revision to Previously Issued Financial Statements | ' |
2. Revisions to Previously Issued Consolidated Financial Statements |
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We have revised our previously issued consolidated financial statements to reflect (a) the finalization of purchase accounting and (b) a change in our accounting for our contract related to the Bradley Airport as described in Note 11 (the “Bradley Agreement”) and certain other adjustments. |
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Purchase Accounting Finalization |
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As described in Note 3 of these consolidated financial statements, we purchased KCPC Holdings, Inc. (“KCPC”) on October 2, 2012. During September 2013 we finalized the purchase price allocation (“PPA”) for this acquisition. We have recast our previously issued consolidated financial statements to reflect the impact of the final purchase allocation as if it was completed at the date of acquisition. The impact of the finalization of the purchase price allocation is reflected in the table shown below. |
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Restatement of Accounting |
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We have restated our consolidated financial statements to correct the accounting for certain transactions. The restatement is primarily related to the accounting for the agreement under which we operate the Bradley International Airport. |
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We account for the Bradley Agreement, which is described in detail in Note 11 of these consolidated financial statements, as a management agreement. We have historically recognized an accounts receivable for deficiency payments that we have made under the Bradley Agreement as we believed based on the Bradley Agreement that we will ultimately receive these amounts. However, while we continue to believe that these amounts are ultimately collectible we have concluded that the collection of these amounts represent a contingency related to the contract and should be recorded when received. The impact of the restatement is reflected in the table shown below. |
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Impact of the Revisions |
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The following tables summarize the most significant impacts of the changes described above. |
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| | As originally | | Impact of | | As Recast for | | Impact of | | As Revised | |
reported | Purchase Price | Purchase Price | Restatement |
| Allocation | Allocation | |
| Finalization | Finalization | |
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BALANCE SHEET | | | | | | | | | | | |
As of June 30, 2013 | | | | | | | | | | | |
Total current assets | | 172,997 | | 788 | | 173,785 | | 441 | | 174,226 | |
Long-term receivables, net | | 14,989 | | — | | 14,989 | | (14,989 | ) | — | |
Intangible assets, net | | 160,231 | | 20,494 | | 180,725 | | — | | 180,725 | |
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Goodwill | | 433,877 | | 5,418 | | 439,295 | | — | | 439,295 | |
Total assets | | 867,413 | | 26,802 | | 894,215 | | (14,520 | ) | 879,695 | |
Total current liabilities | | 249,959 | | 3,011 | | 252,970 | | — | | 252,970 | |
Unfavorable lease contracts | | 37,622 | | 29,104 | | 66,726 | | — | | 66,726 | |
Deferred tax liabilities | | 28,043 | | (3,822 | ) | 24,221 | | 5,560 | | 18,661 | |
Accumulated deficit | | (36,134 | ) | (1,491 | ) | (37,625 | ) | (8,959 | ) | (46,584 | ) |
Total Standard Parking Corporation stockholders’ equity | | 203,159 | | (1,491 | ) | 201,668 | | (8,959 | ) | 192,709 | |
Total liabilities and shareholders’ equity | | 867,413 | | 26,802 | | 894,215 | | (14,520 | ) | 879,695 | |
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INCOME STATEMENT | | | | | | | | | | | |
For six months ended June 30, 2013 | | | | | | | | | | | |
Total cost of parking services | | 653,932 | | 1,066 | | 654,998 | | (417 | ) | 654,581 | |
Total gross profit | | 86,369 | | (417 | ) | 85,952 | | 417 | | 86,369 | |
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Operating income | | 16,293 | | (780 | ) | 15,513 | | 295 | | 15,808 | |
Income before income taxes | | 6,822 | | (780 | ) | 6,042 | | 402 | | 6,444 | |
Income tax (benefit) expense | | 2,095 | | (327 | ) | 1,768 | | 143 | | 1,911 | |
Net income | | 4,727 | | (453 | ) | 4,274 | | 259 | | 4,533 | |
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For six months ended June 30, 2012 | | | | | | | | | | | |
Parking services revenue: | | | | | | | | | | | |
Total cost of parking services | | 333,994 | | — | | 333,994 | | 832 | | 334,826 | |
Total gross profit | | 46,397 | | — | | 46,397 | | (832 | ) | 45,565 | |
Operating income | | 12,949 | | — | | 12,949 | | (832 | ) | 12,117 | |
Income before income taxes | | 10,892 | | — | | 10,892 | | (917 | ) | 9,975 | |
Income tax (benefit) expense | | 4,384 | | — | | 4,384 | | (368 | ) | 4,016 | |
Net income | | 6,508 | | — | | 6,508 | | (549 | ) | 5,959 | |
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For three months ended June 30, 2013 | | | | | | | | | | | |
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Total cost of parking services | | 324,621 | | 448 | | 325,069 | | (820 | ) | 324,249 | |
Total gross profit | | 45,672 | | (448 | ) | 45,224 | | 820 | | 46,044 | |
Operating income | | 10,729 | | (625 | ) | 10,104 | | 820 | | 10,924 | |
Income before income taxes | | 6,154 | | (625 | ) | 5,529 | | 760 | | 6,289 | |
Income tax (benefit) expense | | 2,049 | | (262 | ) | 1,787 | | 278 | | 2,065 | |
Net income | | 4,105 | | (364 | ) | 3,741 | | 483 | | 4,224 | |
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For three months ended June 30, 2012 | | | | | | | | | | | |
Total cost of parking services | | 166,178 | | — | | 166,178 | | 53 | | 166,231 | |
Total gross profit | | 24,768 | | — | | 24,768 | | (53 | ) | 24,715 | |
Operating income | | 8,093 | | — | | 8,093 | | (53 | ) | 8,040 | |
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Income before income taxes | | 7,096 | | — | | 7,096 | | (138 | ) | 6,958 | |
Income tax (benefit) expense | | 2,856 | | — | | 2,856 | | (55 | ) | 2,801 | |
Net income | | 4,240 | | — | | 4,240 | | (83 | ) | 4,157 | |
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We had a $0.02 and $0.01 increase to our net income per share-basic and diluted, respectively, as a result of the restatement of accounting for the Bradley Agreement and a $0.02 reduction to our net income per share-basic and diluted for the purchase price finalization for KCPC for the six months ended June 30, 2013. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC, was $0.13, compared to $0.15, as originally reported. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement was $0.15 and $0.14, respectively, compared to $0.15 for both basic and diluted net income per share, as originally reported. |
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We had a $0.04 and $0.03 reduction to our net income per share-basic and diluted, respectively, as a result of our restatement of accounting for the Bradley Agreement for the six months ended June 30, 2012. Our net income per share-basic and diluted for the same period, after giving effect to the restatement of accounting for the Bradley Agreement was $0.37, compared to $0.41 and $0.40, respectively, as originally reported. |
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We had a $0.02 increase to our net income per share-basic and diluted, as a result of the restatement of accounting for the Bradley Agreement and a $0.01 and $0.02 reduction to our net income per share-basic and diluted, respectively, for the purchase price finalization for KCPC for the three months ended June 30, 2013. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC, was $0.14 and $0.13, respectively, compared to $0.15 for both basic and diluted net income per share, as originally reported. Our net income per share-basic and diluted for the same period, after giving effect to the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement was $0.16 and $0.15, respectively, compared to $0.15 for both basic and diluted net income per share, as originally reported. |
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We had a $0.01 reduction and $nil effect to our net income per share-basic and diluted, respectively, as a result of our restatement of accounting for the Bradley Agreement for the three months ended June 30, 2012. Our net income per share-basic and diluted for the same period, after giving effect to the restatement of accounting for the Bradley Agreement was $0.26, compared to $0.27 and $0.26, respectively, as originally reported. |
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Net income attributable to Standard Parking Corporation, within the Consolidated Statements of Income, and other comprehensive income and comprehensive income attributable to Standard Parking Corporation, within the Consolidated Statements of Comprehensive Income, was only effected by the change in net income as a result of the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement for the three and six- months ended June 30, 2013 and the restatement of accounting for the Bradley Agreement for the three and six- months ended June 30, 2012. |
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The effect of the restatement had no impact to our net cash provided by operating activities, net cash provided by (used in) investing activities or net cash used in financing activities, within the Consolidated Statements of Cash Flows, for the three and six- months ended June 30, 2013 and 2012. |
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The notes to these consolidated financial statements have been revised, as needed, to reflect the impact of the purchase price finalization for KCPC and the restatement of accounting for the Bradley Agreement, as previously discussed above. |