SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 29, 2002
Exact name of Registrant as specified in its charter: Central Parking
Corporation
State or other jurisdiction of incorporation: Tennessee
Commission File Number: 001-13950
IRS Employer Identification Number: 62-1052916
Address of principal executive offices: 2401 21st Avenue South
Suite 200
Nashville, TN 37212
Registrant's telephone number, including area code: (615) 297-4255
Former name or former address, if changed since last report:
Not applicable
ITEM 5. OTHER EVENTS
On April 29, 2002, the Registrant announced its operating results for the second
quarter of fiscal 2002.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) EXHIBITS
Exhibit No. 99.1 Text of press release dated April 29, 2002
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Central Parking Corporation
/s/ Hiram A.Cox
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Date: April 30, 2002 By: Hiram A. Cox
Chief Financial Officer
EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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Investor Contact: William J. Vareschi, Jr. or Hiram A. Cox
Vice Chairman and Senior Vice President and
Chief Executive Officer Chief Financial Officer
(615) 297-4255 (615) 297-4255
bvareschi@parking.com hcox@parking.com
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Media Contact: Richard Jonardi
Communications Manager
(615) 297-4255
rjonardi@parking.com
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CENTRAL PARKING CORPORATION REPORTS SECOND QUARTER EARNINGS
NASHVILLE, TENN. (APRIL 29, 2002) -- Central Parking Corporation (NYSE: CPC)
today announced earnings for the second fiscal quarter ended March 31, 2002,
before property-related activities and extraordinary items (pro forma), of $9.4
million, or $0.26 per diluted share, compared with $10.8 million, or $0.30 per
diluted share, in the year-earlier period. For comparability purposes, pro
forma earnings for the prior year have been increased by $0.07 to reflect the
discontinuation of goodwill amortization relating to the Company's October 1,
2001 adoption of SFAS 142. Revenues for the second quarter of fiscal 2002
increased to $179.1 million versus $174.0 million in the year-earlier period.
Reported earnings (GAAP) for the quarter ended March 31, 2002 were $0.36
per diluted share including an extraordinary gain of $0.05 related to the
repurchase of 500,000 shares of trust issued preferred securities. Reported
earnings (GAAP) per diluted share were $0.19 in the prior-year period.
William J. Vareschi, Jr., Vice Chairman and Chief Executive Officer, said,
"Revenues and earnings for the second quarter of fiscal 2002 were at the high
end of our February guidance. The residual impact from the attacks of September
11 continued to impact our business in New York City and to a lesser degree at
travel-related sites such as resort hotels. Nonetheless, it appears that
discretionary revenue levels have bottomed out in most areas of the country.
New York City continues to feel the impact from the ban on single occupant
vehicles during the morning rush hour. However, New York City transient
revenues approached prior-year levels in February and March. Excluding the New
York region, revenues for the second quarter grew approximately 6% versus the
same period last year. This quarter marks the Company's first year-over-year
increase in revenues in approximately two years as our complementary
acquisitions and a positive new business/lost business ratio more than offset
the softness in New York revenues. Looking forward, we expect continued
year-over-year revenue growth reflecting our successful marketing efforts
combined with our "Operational Excellence" initiatives.
"The state of the general economy and the travel restrictions in New York
City are expected to continue to negatively impact our results in the third
quarter. The impact of the New York single occupancy vehicle restrictions should
be less than in previous quarters given some recent modifications to the
program. We expect third quarter revenues to be approximately $180 to $185
million compared to $179.1 million for the same period last year. We expect
fully diluted earnings per share for the quarter of $0.28 to $0.32 per share
before property-related activities and extraordinary items (pro forma) compared
to approximately $0.32 per share (pro forma) in the same period last year." For
comparability purposes, earnings for the third fiscal quarter of last year have
been adjusted upward by approximately $0.08 to reflect the discontinuation of
goodwill amortization. For the full fiscal year, we expect fully diluted
earnings per share before property related activities and extraordinary items
(pro forma) of approximately $1.02 to $1.08.
Vareschi concluded, "We are encouraged by this quarter's results and
believe that we have established a platform for improved performance as the
economy improves. We are gaining market share again, our complementary
acquisitions are contributing to our bottom line, interest rates remain
attractive and our "Operational Excellence" initiatives are beginning to deliver
results."
Central Parking Corporation, headquartered in Nashville, Tennessee, is a
leading provider of parking and transportation services. The Company operates
approximately 4,000 parking facilities containing approximately 1.5 million
spaces at locations in 38 states, the District of Columbia, Canada, Puerto Rico,
the United Kingdom, the Republic of Ireland, Chile, Colombia, Germany, Mexico,
Peru, Poland, Spain, Venezuela and Greece.
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
periodic reports filed with the Securities and Exchange Commission.
CENTRAL PARKING CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Amounts in thousands, except per share data
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31, MARCH 31,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Total revenues $ 179,134 $ 174,034 $ 356,085 $ 351,599
Total cost and expenses (a) (161,295) (152,785) (319,383) (304,868)
Interest expense, net (1,603) (3,903) (3,509) (8,290)
Other (expenses) income, net (666) 57 (749) (301)
Income taxes (b) (5,138) (5,540) (10,707) (12,516)
Minority interest, net of tax (1,007) (1,048) (2,278) (1,836)
---------- ---------- ---------- ----------
Earnings (pro forma) 9,425 10,815 19,459 23,788
Property-related gains (losses), net of tax 1,759 (1,378) 4,097 33
Amortization of goodwill, net of tax -- (2,702) -- (5,405)
Extraordinary gain, net of tax 1,707 -- 5,019 --
Cumulative effect of account change,
net of tax -- -- -- (258)
---------- ---------- ---------- ----------
Net earnings (GAAP) $ 12,891 $ 6,735 $ 28,575 $ 18,158
========== ========== ========== ==========
Pro forma earnings
Basic $ 0.26 $ 0.30 $ 0.54 $ 0.66
Diluted $ 0.26 $ 0.30 $ 0.54 $ 0.66
Net earnings per share (GAAP)
Basic $ 0.36 $ 0.19 $ 0.80 $ 0.51
Diluted $ 0.36 $ 0.19 $ 0.79 $ 0.50
Weighted average common shares:
Basic 35,775 35,702 35,765 35,857
Diluted 36,138 35,965 36,005 36,119
(a) Excludes amortization of goodwill of $2,832 and $5,665 for the three and
six months ended March 31, 2001, respectively. The Company adopted SFAS
142, "Goodwill and Intangible Assets," as of October 1, 2001, and therefore
no longer amortizes goodwill.
(b) Income tax expense for the three and six months ended March 31, 2002
excludes income tax (expense) on net property-related gains of ($1,266) and
($2,936), respectively. Income tax expense for the three and six months
ended March 31, 2001 excludes income tax benefit (expense) on net
property-related (losses) gains of $918 and ($448), respectively, and
income tax benefit on goodwill amortization of $130 and $260, respectively.
CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
Amounts in thousands, except per share data
THREE MONTHS ENDED
MARCH 31,
2002 2001
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Revenues:
Parking $149,768 $148,848
Management contracts 29,366 25,186
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Total revenues 179,134 174,034
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Costs and expenses:
Cost of parking 130,510 126,730
Cost of management contracts 13,331 9,777
General and administrative 17,356 16,109
Goodwill and non-compete amortization 98 3,001
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Total costs and expenses 161,295 155,617
Property-related gains (losses), net 3,025 (2,296)
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Operating earnings 20,864 16,121
Other income (expenses):
Interest income 1,458 1,425
Interest expense (3,061) (5,328)
Dividends on company-obligated mandatorily redeemable
convertible securities of a subsidiary trust (1,259) (1,471)
Equity in partnership and joint venture earnings 593 1,528
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Earnings before income taxes, minority interest and
extraordinary item 18,595 12,275
Income tax expense (6,404) (4,492)
Minority interest, net of tax (1,007) (1,048)
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Earnings before extraordinary item 11,184 6,735
Extraordinary item, net of tax 1,707 --
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Net earnings $ 12,891 $ 6,735
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Basic earnings per share:
Earnings before extraordinary item $ 0.31 $ 0.19
Extraordinary item, net of tax 0.05 --
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Net earnings $ 0.36 $ 0.19
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Diluted earnings per share:
Earnings before extraordinary item $ 0.31 $ 0.19
Extraordinary item, net of tax 0.05 --
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Net earnings $ 0.36 $ 0.19
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CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
Amounts in thousands, except per share data
SIX MONTHS ENDED
MARCH 31,
2002 2001
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Revenues:
Parking $297,140 $300,525
Management contracts 58,945 51,074
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Total revenues 356,085 351,599
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Costs and expenses:
Cost of parking 258,480 250,695
Cost of management contracts 25,430 19,999
General and administrative 35,347 33,837
Goodwill and non-compete amortization 216 6,002
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Total costs and expenses 319,383 310,533
Property-related gains, net 7,033 481
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Operating earnings 43,735 41,547
Other income (expenses):
Interest income 2,810 2,979
Interest expense (6,319) (11,269)
Dividends on company-obligated mandatorily redeemable
convertible securities of a subsidiary trust (2,730) (2,943)
Equity in partnership and joint venture earnings 1,981 2,642
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Earnings before income taxes, minority interest, extraordinary
item and cumulative effect of accounting change 39,477 32,956
Income tax expense (13,643) (12,704)
Minority interest, net of tax (2,278) (1,836)
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Earnings before extraordinary item and cumulative effect
of accounting change 23,556 18,416
Extraordinary item, net of tax 5,019 --
Cumulative effect of accounting change, net of tax -- (258)
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Net earnings $ 28,575 $ 18,158
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Basic earnings per share:
Earnings before extraordinary item $ 0.66 $ 0.51
Extraordinary item, net of tax 0.14 --
Cumulative effect of accounting change, net of tax -- --
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Net earnings $ 0.80 $ 0.51
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Diluted earnings per share:
Earnings before extraordinary item $ 0.65 $ 0.51
Extraordinary item, net of tax 0.14 --
Cumulative effect of accounting change, net of tax -- (0.01)
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Net earnings $ 0.79 $ 0.50
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CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Amounts in thousands
MARCH 31, SEPTEMBER 30,
2002 2001
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ASSETS
Current assets:
Cash and cash equivalents $ 41,153 $ 41,849
Management accounts receivable 38,440 32,613
Accounts receivable - other 12,702 16,149
Current portion of notes receivable 8,311 6,836
Prepaid expenses 12,103 6,939
Deferred income taxes 259 259
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Total current assets 112,968 104,645
Notes receivable, less current portion 42,556 42,931
Property, equipment and leasehold improvements, net 410,333 415,405
Contract and lease rights, net 115,192 88,094
Goodwill, net 251,506 250,630
Investment in and advances to partnerships and joint ventures 14,799 30,704
Other assets 55,984 54,472
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Total Assets $1,003,338 $986,881
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations $ 53,401 $ 53,337
Accounts payable 80,726 77,887
Accrued expenses 25,650 24,997
Management accounts payable 22,904 20,541
Income taxes payable 11,618 7,134
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Total current liabilities 194,299 183,896
Long-term debt and capital lease obligations, less current portion 206,210 208,885
Deferred rent 30,584 22,310
Deferred income taxes 16,470 15,757
Minority interest 29,984 31,121
Other liabilities 33,258 33,466
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Total liabilities 510,805 495,435
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Company-obligated mandatorily redeemable securities of subsidiary
holding solely parent debentures 81,555 110,000
Shareholders' equity:
Common stock 359 358
Additional paid-in capital 240,140 238,464
Accumulated other comprehensive loss, net (1,625) (1,979)
Retained earnings 172,809 145,308
Shares held in trust (705) (705)
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Total shareholders' equity 410,978 381,446
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Total Liabilities and Shareholders' Equity $1,003,338 $986,881
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CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Amounts in thousands
SIX MONTHS ENDED
MARCH 31,
2002 2001
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Cash flows from operating activities:
Net earnings $ 28,575 $ 18,158
Depreciation and amortization 17,082 21,421
Equity in partnership and joint venture earnings (1,981) (2,642)
Distributions from partnerships and joint ventures 2,697 2,295
Property-related (gains), net (7,033) (481)
Gain on sale of trust issued preferred securities, net of tax (5,019) --
Deferred income taxes 379 19
Minority interest 2,278 1,836
Changes in operating assets and liabilities (net of acquisitions):
Management accounts receivable (3,743) 1,467
Accounts receivable - other 4,013 (741)
Prepaid expenses (5,164) 646
Other assets (2,937) (306)
Accounts payable, accrued expenses and other liabilities 2,726 (12,431)
Management accounts payable 1,925 (367)
Deferred rent 8,274 1,346
Income taxes payable 1,112 (5,572)
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Net cash provided by operating activities 43,184 24,648
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Cash flows from investing activities:
Proceeds from disposition of property and equipment 13,942 17,011
Proceeds from sale of investment in partnership 18,399 --
Purchase of property, equipment and leasehold improvements (12,922) (15,637)
Purchase of contract and lease rights (18,872) (530)
Acquisitions, net of cash acquired (17,628) --
Other investing activities 32 3,664
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Net cash (used) provided by investing activities (17,049) 4,508
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Cash flows from financing activities:
Dividends paid (1,075) (1,085)
Net borrowings under revolving credit agreement 23,500 12,550
Principal repayments on notes payable and capital leases (27,899) (29,176)
Payment to minority interest partners (3,563) (3,114)
Repurchase of common stock (488) (9,960)
Repurchase of mandatorily redeemable securities (19,325) --
Issuance of common stock and exercise of stock options 2,165 560
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Net cash used by financing activities (26,685) (30,225)
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Foreign currency translation (146) 175
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Net decrease in cash and cash equivalents (696) (894)
Cash and cash equivalents at beginning of period 41,849 43,214
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Cash and cash equivalents at end of period $ 41,153 $ 42,320
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