EXHIBIT 99.1
[CENTRAL LOGO] NEWS
2401 21st Avenue South, Suite 200, Nashville, TN 37212 (615) 297-4255
Fax: (615) 297-6240
FOR IMMEDIATE RELEASE
Contact: Monroe J. Carell, Jr.
Chairman and Chief Executive Officer
(615) 297-4255
CENTRAL PARKING CORPORATION REPORTS
RESULTS FOR SECOND FISCAL QUARTER
--------------------------------
EADS NAMED PRESIDENT AND CHIEF OPERATING OFFICER
NASHVILLE, TENN. (MAY 7, 2003) -- Central Parking Corporation (NYSE: CPC)
announced today a net loss of $9.2 million, or $0.25 per diluted share, for the
quarter ended March 31, 2003. This compares to reported net earnings for the
quarter ended March 31, 2002, of $12.9 million or $0.36 per diluted share.
Revenues (excluding reimbursed management costs) for the second quarter of
fiscal 2003 were $175.8 million compared to $177.3 million in the year-earlier
period.
As previously announced, second quarter earnings were impacted
significantly by unusually severe winter weather, which reduced operating income
by approximately $7 million through a combination of lower revenues and higher
snow removal costs, increased legal and professional expenses of approximately
$2.9 million and $1.6 million in costs associated with the refinancing of its
$350 million credit facility. Second quarter results also were affected by
impairment charges of approximately $5.4 million.
For the six-month period ended March 31, 2003, the company reported a
net loss of $2.3 million or $0.06 per diluted share. This compares to net
earnings of $19.2 million or $0.53 per fully diluted share in the comparable
prior year period. Revenues (excluding reimbursed management costs) for the
first six months of fiscal 2003 were $357.0 million compared to $352.3 million
for the first six months of fiscal 2002.
Cash flow from operating activities totaled $5.3 million for the second
quarter and $12.2 million for the first half of fiscal 2003. This compares to
cash flow from operating activities of $14.4 million and $44.3 million in the
respective prior year periods.
"Second quarter results were affected by several factors, including the
continued weak economy and the worst winter weather in more than a decade," said
Mr. Carell. "Winter storms impacted our operations from Texas to Boston, with
our operations in the Northeast particularly hard hit. The quarter
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May 7, 2003
also was affected by impairment charges resulting primarily from the company's
review of underperforming locations and the exiting of certain locations. This
combination of factors resulted in the company's noncompliance with the leverage
ratios in its $350 million credit facility as of the end of the second quarter.
As a result, the credit facility principal balance of $238.5 million is
reflected as current debt on the company's March 31, 2003 balance sheet. We are
working closely with our agent bank, Bank of America, and our other lenders to
secure a waiver for the quarter prior to May 15, 2003. Despite the disappointing
results for the quarter and the first half of the year, cash flow remained
strong and our new-to-lost business ratio for the quarter and first six months
was 1.0 and 1.7, respectively."
The Company also announced the appointment of Emanuel J. Eads as
president and chief operating officer. Mr. Eads, age 51, has served the company
in a variety of positions of increasing responsibility since joining the company
in 1974. From 1985 to 1998, Mr. Eads served as senior vice president, during
which time he launched the company's international expansion and stadium/arena
segment. In 1998, he was named executive vice president with responsibility for
several regions of the United States. In October 2001, he became President of
Business Development with responsibility for marketing, branding, national
accounts, technology and the company's rapidly expanding airports, national
parks and on-street segment. Under his leadership, the company added eight major
airport parking contracts and nine on-street contracts in less than two years.
Mr. Eads' appointment follows the announcement earlier this week that Monroe J.
Carell, Jr., the founder and chairman of the company, has been named chief
executive officer, replacing William J. Vareschi, Jr.
"I am especially pleased to have Emanuel Eads assume the role of
president and chief operating officer. On a combined basis, Mr. Eads and I have
some 65 years of experience in the parking industry, and we will be leading the
most experienced and professional management team in the business." Mr. Carell
added, "Looking ahead, we will accelerate the cost reduction program already
underway. We have already identified reductions in general and administrative
costs totaling 7%, and we are taking steps to reduce the cost of parking by
renegotiating leases, exiting underperforming locations and eliminating
positions. We will reduce capital spending and use our free cash flow to pay
down debt. We will refocus the business on the basics required to provide total
value to our customers. We will also emphasize the importance of relationships
with our landlords, management account clients and key vendors. Our immediate
goal is to return this business to profitability and, over the longer term, our
goal is to provide our shareholders with consistent, above-average earnings
growth."
Central Parking Corporation, headquartered in Nashville, Tennessee, is
a leading provider of parking and transportation services. The Company operates
approximately 3,900 parking facilities containing approximately 1.6 million
spaces at locations in 39 states, the District of Columbia, Canada, Puerto Rico,
the United Kingdom, the Republic of Ireland, Chile, Germany, Switzerland,
Mexico, Poland, Spain, Venezuela and Greece.
This press release contains projections and other forward-looking
statements within the meaning of Section 21E of the Securities and Exchange Act
of 1934. These projections and statements reflect the Company's current views
with the 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.
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CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
Amounts in thousands, except per share data
THREE MONTHS ENDED MARCH 31, SIX MONTHS ENDED MARCH 31,
2003 2002 2003 2002
--------- --------- --------- ---------
Revenues:
Parking $ 146,451 $ 147,919 $ 297,099 $ 293,378
Management contract and other 29,381 29,357 59,938 58,931
--------- --------- --------- ---------
175,832 177,276 357,037 352,309
Reimbursement of management contract expenses 102,722 94,632 204,703 192,336
--------- --------- --------- ---------
Total revenues 278,554 271,908 561,740 544,645
Costs and expenses:
Cost of parking 140,407 128,810 274,828 255,066
Cost of management contracts 17,486 13,330 32,094 25,339
General and administrative 20,916 17,356 41,414 35,347
Goodwill and non-compete amortization 50 98 144 216
--------- --------- --------- ---------
178,859 159,594 348,480 315,968
Reimbursed management contract expenses 102,722 94,632 204,703 192,336
--------- --------- --------- ---------
Total costs and expenses 281,581 254,226 553,183 508,304
Property-related (losses) gains, net (2,540) 3,024 (2,540) 7,033
--------- --------- --------- ---------
Operating (loss) earnings (5,567) 20,706 6,017 43,374
Other income (expenses):
Interest income 1,170 1,517 2,368 2,927
Interest expense (5,594) (3,061) (8,548) (6,319)
Dividends on company-obligated mandatorily redeemable
convertible securities of a subsidiary trust (1,045) (1,258) (2,089) (2,730)
Gain on repurchase of company-obligated mandatorily
redeemable convertible securities of a subsidiary trust -- 2,845 -- 8,364
Gain on sale of non operating assets 3,241 -- 3,241 --
Equity in partnership and joint venture earnings 592 587 1,261 1,969
--------- --------- --------- ---------
(Loss) earnings before income taxes and minority interest (7,203) 21,336 2,250 47,585
Income tax benefit (expense) 2,460 (7,501) (667) (16,886)
Net (loss) earnings before minority interest,
and cumulative effect of accounting change (4,743) 13,835 1,583 30,699
Minority interest, net of tax (1,075) (1,006) (2,360) (2,278)
Cumulative effect of accounting change, net of tax -- -- -- (9,341)
--------- --------- --------- ---------
(Loss) earnings from continuing operations (5,818) 12,829 (777) 19,080
--------- --------- --------- ---------
Discontinued operations, net of tax (3,332) 62 (1,507) 154
--------- --------- --------- ---------
Net (loss) earnings $ (9,150) $ 12,891 $ (2,284) $ 19,234
========= ========= ========= =========
Basic earnings per share:
(Loss) earnings from continuing operations $ (0.16) $ 0.36 $ (0.02) $ 0.53
Discontinued operations, net of tax (0.09) -- (0.04) --
--------- --------- --------- ---------
Net (loss) earnings $ (0.25) $ 0.36 $ (0.06) $ 0.53
========= ========= ========= =========
Diluted earnings per share:
(Loss) earnings from continuing operations $ (0.16) $ 0.36 $ (0.02) $ 0.53
Discontinued operations, net of tax (0.09) -- (0.04) --
--------- --------- --------- ---------
Net (loss) earnings $ (0.25) $ 0.36 $ (0.06) $ 0.53
========= ========= ========= =========
Weighted average common shares:
Basic 35,980 35,775 35,974 35,765
Diluted 35,980 36,138 35,974 36,005
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CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Amounts in thousands
MARCH 31, SEPTEMBER 30,
2003 2002
----------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 38,326 $ 33,498
Management accounts receivable 38,863 39,664
Accounts receivable - other 11,341 15,714
Current portion of notes receivable 5,445 11,549
Prepaid expenses 12,692 9,835
Deferred income taxes 72 72
----------- ---------
Total current assets 106,739 110,332
Notes receivable, less current portion 40,628 41,210
Property, equipment and leasehold improvements, net 449,163 434,733
Contract and lease rights, net 107,106 108,406
Goodwill, net 242,196 242,141
Investment in and advances to partnerships and joint ventures 14,093 12,836
Other assets 46,544 49,226
----------- ---------
Total Assets $ 1,006,469 $ 998,884
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations $ 241,473 $ 53,318
Accounts payable 75,765 73,638
Accrued expenses 47,450 43,659
Management accounts payable 25,846 22,671
Income taxes payable 1,153 9,851
----------- ---------
Total current liabilities 391,687 203,137
Long-term debt and capital lease obligations, less current portion 34,182 207,098
Deferred rent 28,333 29,104
Deferred income taxes 10,519 13,825
Other liabilities 19,059 20,259
----------- ---------
Total liabilities 483,780 473,423
----------- ---------
Company-obligated mandatorily redeemable securities of
subsidiary holding solely parent debentures 78,085 78,085
Minority interest 30,335 31,572
Shareholders' equity:
Common stock 360 360
Additional paid-in capital 242,640 242,112
Accumulated other comprehensive loss, net (1,382) (2,377)
Retained earnings 173,559 176,924
Other shareholders' equity (908) (1,215)
----------- ---------
Total shareholders' equity 414,269 415,804
----------- ---------
Total Liabilities and Shareholders' Equity $ 1,006,469 $ 998,884
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CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Amounts in thousands
SIX MONTHS ENDED MARCH 31,
2003 2002
--------- --------
Cash flows from operating activities:
Net (loss) earnings $ (2,284) $ 19,234
Loss (earnings) from discontinued operations 1,507 (154)
--------- --------
(Loss) earnings from continuing operations (777) 19,080
Depreciation and amortization 17,139 17,082
Equity in partnership and joint venture earnings (1,261) (1,981)
Distributions from partnerships and joint ventures 591 2,697
Gain on sale of non operating assets (3,241) --
Property-related (gains) losses, net 2,540 (7,033)
Gain on repurchase of mandatorily redeemable convertible securities -- (5,019)
Loss on derivatives related to refinancing 918
Decrease in fair value of derivatives 12
Cumulative effect of accounting change -- 9,341
Deferred income taxes (3,968) 379
Minority interest 2,360 2,278
Changes in operating assets and liabilities (net of acquisitions):
Management accounts receivable 801 (2,587)
Accounts receivable - other 4,373 4,013
Prepaid expenses (2,857) (5,163)
Other assets (1,237) (2,931)
Accounts payable, accrued expenses and other liabilities 4,436 2,723
Management accounts payable 3,175 1,925
Deferred rent (771) 8,274
Income taxes payable (8,698) 1,112
--------- --------
Net cash provided by operating activities - continuing operations 13,535 44,190
Net cash (used) provided by operating activities - discontinued operations (1,299) 154
--------- --------
Net cash provided by operating activities 12,236 44,344
--------- --------
Cash flows from investing activities:
Proceeds from disposition of property and equipment 17,200 13,942
Proceeds from investment in partnership -- 17,603
Purchase of property, equipment and leasehold improvements (34,573) (12,922)
Purchase of contract and lease rights (7,857) (18,872)
Acquisitions, net of cash acquired -- (17,988)
Other investing activities 6,732 32
--------- --------
Net cash used by investing activities (18,498) (18,205)
--------- --------
Cash flows from financing activities:
Dividends paid (1,081) (1,080)
Net borrowings under revolving credit agreement (83,000) 23,500
Proceeds from issuance of notes payable, net of issuance costs 175,000 --
Principal repayments on notes payable and capital leases (76,761) (27,899)
Payments to minority interest partners (3,597) (3,563)
Repurchase of common stock -- (488)
Repurchase of mandatorily redeemable securities -- (19,325)
Issuance of common stock and exercise of stock options 528 2,166
--------- --------
Net cash provided (used) by financing activities 11,089 (26,689)
--------- --------
Foreign currency translation 1 (146)
--------- --------
Net decrease in cash and cash equivalents 4,828 (696)
Cash and cash equivalents at beginning of period 33,498 41,849
--------- --------
Cash and cash equivalents at end of period $ 38,326 $ 41,153
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