EXHIBIT 99.1
[CENTRAL PARKING CORPORATION LOGO]
NEWS
2401 21st Avenue South, Suite 200, Nashville, TN 37212
(615) 297-4255 Fax: (615) 297-6240
Investor Contact: Jeff Heavrin
Senior Vice President and Chief Financial Officer
Central Parking Corporation
(615) 297-4255
jheavrin@parking.com
CENTRAL PARKING REPORTS FOURTH QUARTER AND
FISCAL 2005 RESULTS
NASHVILLE, Tenn. -- (Dec. 14, 2005) -- Central Parking Corporation (NYSE:CPC)
today announced financial results for the fourth quarter and fiscal year ended
September 30, 2005. For the fiscal year ended September 30, 2005, earnings from
continuing operations increased to $33.7 million, or $0.92 per diluted share,
compared with $18.4 million, or $0.50 per diluted share, in fiscal 2004. Net
earnings for fiscal 2005 were $14.2 million, or $0.39 per diluted share,
compared with $17.0 million, or $0.46 per diluted share in the prior year.
These results include the effect of the Company's restatement of its
quarterly financial statements for the first three quarters of fiscal 2005
relating to its United Kingdom subsidiary. As previously announced, the Company
became aware during the fourth quarter of fiscal 2005 of certain unauthorized
related party transactions and improper and inaccurate accounting entries made
by former management level employees in its United Kingdom subsidiary. The
effect of the restatement on the first three quarters of fiscal 2005 is a
reduction in net earnings of $10 million, or $0.28 per share. As a result of the
issues identified in the United Kingdom, the Company will report material
weaknesses in its controls over financial reporting as of September 30, 2005.
Earnings from continuing operations for the fourth quarter of fiscal
2005 were $17.9 million, or $0.49 per diluted share, compared with $1.1 million,
or $0.03 per share in the year earlier period. Net earnings for the fourth
quarter of fiscal 2005 were $9.6 million, or $0.26 per diluted share, compared
with a net loss of $0.9 million or $0.02 per share in the prior year period.
The Company's program of opportunistic property and lease sales
generated proceeds of $81.5 million during fiscal 2005. Pre-tax property related
gains included in results from continuing operations for fiscal 2005 totaled
$53.6 million, or $0.87 per share. For the fourth quarter of fiscal 2005,
pre-tax property related gains totaled $38.1 million, or $0.62 per share.
Total revenues in fiscal 2005 increased slightly to $1.1 billion, while
revenues excluding reimbursed management expenses declined to $669 million
compared with $698 million in the prior year due primarily to the conversion of
$15.3 million of revenues, excluding reimbursed management expenses, from leases
to management agreements.
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CPC Reports Fourth Quarter and Fiscal 2005 Results
Page 2
Dec. 14, 2005
"Net earnings for fiscal 2005 were negatively affected by the
previously announced issues in the Company's United Kingdom operations," said
Emanuel Eads, President and Chief Executive Officer. "Excluding the United
Kingdom region, net earnings for fiscal 2005 were $34.3 million, or $0.93 per
share. Fourth quarter results also were negatively affected by $2.0 million in
costs related to the Company's Sarbanes Oxley compliance initiative and $1.3
million in increased liability claims costs.
"Our program of opportunistic property sales again was accretive,
generating proceeds during the quarter of $46.1 million that were used to pay
down debt. In total, we reduced indebtedness by $66.8 million in the fourth
quarter. Same store sales, which increased 1.9% for the full fiscal year,
accelerated to 3.0% in the fourth quarter. Our focus on adding profitable new
contracts yielded positive results during the fourth quarter as we were awarded
a long-term lease to operate EasyPark, a large off-site airport parking facility
serving Los Angeles International Airport. This contract includes a 425 space
garage, a 1,628 space surface lot as well as 24/7 shuttle service to LAX. In
September, we entered into an agreement to provide valet and shuttle services
for the largest retail mall in the Caribbean, Plaza Las Americas in San Juan,
Puerto Rico. More recently, we renewed an agreement with improved financial
terms to provide parking services for all pay parking areas within Stanley Park
and the Vancouver parks system, which consists of over 4,000 parking spaces, for
a term of five years.
"We also are making progress in implementing our new strategic plan,
which was announced in August, by moving forward with plans to divest marginal
and low growth markets and expand the Company's operational excellence
initiative. In November, we named industry veteran Bruce LaPree to lead the
Company's national accounts program. In addition, the Company's "Dutch Auction"
tender offer, which also was announced in August, was successfully completed on
October 14, 2005, with the Company purchasing 4,859,674 shares of common stock
at a purchase price of $15.50 per share for an aggregate purchase price of $75.3
million.
"Looking ahead to fiscal 2006, we will continue to implement the new
strategic plan, pursue opportunistic property sales and focus our efforts on
adding profitable locations. Based on the assumptions below, we expect that
earnings from continuing operations, which includes property-related
gains/losses, for the fiscal year ending September 30, 2006, will be in the
range of $0.50 to $0.57 per share," Eads concluded.
The assumptions underlying the financial guidance for fiscal 2006 include:
<Table>
<Caption>
2006 Assumptions Actual 2005
- --------------------------------------------------------------------------------------------
Operating Earnings: Parking $48 -- $51 million $47.0 million
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Operating Earnings: Management contract $65 - $66 million $56.9 million
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Total G & A $82 million $83.2 million
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Property-related gains/losses $14 million $53.6 million
- --------------------------------------------------------------------------------------------
Interest (Expense, net and Dividends) $18.5 million $13.2 million
- --------------------------------------------------------------------------------------------
Depreciation & Amortization $30 million $27.3 million
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Effective tax rate 39% 40%
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Outstanding Shares 32 million 36.8 million
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CapEx $19 - $22 million 12.3 million
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</Table>
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CPC Reports Fourth Quarter and Fiscal 2005 Results
Page 3
Dec. 14, 2005
A conference call regarding this release is scheduled for today,
Wednesday, December 14, 2005, beginning at 10:00 a.m. (EST). Investors and other
interested parties may listen to the teleconference by accessing the online,
real-time webcast and broadcast of the call at www.parking.com or
www.earnings.com.
This press release contains historical and forward-looking information.
The words "expect," "guidance," "looking ahead," "assumptions," "estimates,"
"anticipates," "goal," "outlook," "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 implement its strategic
plan, 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 Reports on Form 10-Q for the quarters ended December 31, 2004;, March
31, 2005; and, June 30, 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.
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CPC Reports Fourth Quarter and Fiscal 2005 Results
Page 4
Dec. 14, 2005
CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Amounts in thousands, except per share data
QTD ended September 30, YTD ended September 30,
2005 2004 2005 2004
--------- --------- ----------- -----------
Revenues:
Parking $ 135,192 $ 137,994 $ 550,782 $ 572,878
Management contracts and Other 30,098 31,286 118,211 124,672
--------- --------- ----------- -----------
165,290 169,280 668,993 697,550
Reimbursement of management contract expenses 124,755 105,453 464,423 418,565
--------- --------- ----------- -----------
Total revenues 290,045 274,733 1,133,416 1,116,115
Costs and expenses:
Cost of parking 125,995 129,277 503,788 521,682
Cost of management contracts 16,542 16,570 61,360 57,904
General and administrative 21,961 18,171 83,181 71,864
--------- --------- ----------- -----------
164,498 164,018 648,329 651,450
Reimbursed management contract expenses 124,755 105,453 464,423 418,565
--------- --------- ----------- -----------
Total costs and expenses 289,253 269,471 1,112,752 1,070,015
Property-related gains, net 38,107 1,685 53,572 7,654
Impairment loss on goodwill (454) -- (454) --
--------- --------- ----------- -----------
Operating earnings 38,445 6,947 73,782 53,754
Other income (expenses):
Interest income 1,380 1,241 4,741 4,883
Interest expense (3,985) (5,241) (17,943) (20,476)
Gain on derivative instruments 3,006 -- 3,006 --
Equity in partnership and joint venture losses (103) (595) (474) (2,984)
--------- --------- ----------- -----------
Earnings from continuing operations before minority interest
and income taxes 38,743 2,352 63,112 35,177
Minority interest (147) (403) (1,331) (2,999)
--------- --------- ----------- -----------
Earnings from continuing operations before income taxes 38,596 1,949 61,781 32,178
Income tax expense (20,666) (874) (28,059) (13,776)
--------- --------- ----------- -----------
Earnings from continuing operations 17,930 1,075 33,722 18,402
--------- --------- ----------- -----------
Discontinued operations, net of tax (8,315) (1,980) (19,546) (1,409)
--------- --------- ----------- -----------
Net earnings $ 9,615 $ (905) $ 14,176 $ 16,993
========= ========= =========== ===========
Basic earnings (loss) per share:
Earnings from continuing operations $ 0.49 $ 0.03 $ 0.92 $ 0.51
Discontinued operations, net of tax (0.23) (0.05) (0.53) (0.04)
--------- --------- ----------- -----------
Net earnings $ 0.26 $ (0.02) $ 0.39 $ 0.47
========= ========= =========== ===========
Diluted earnings (loss) per share:
Earnings from continuing operations $ 0.49 $ 0.03 $ 0.92 $ 0.50
Discontinued operations, net of tax (0.23) (0.05) (0.53) (0.04)
--------- --------- ----------- -----------
Net earnings $ 0.26 $ (0.02) $ 0.39 $ 0.46
========= ========= =========== ===========
Weighted average shares used for basic per share data 36,696 36,552 36,626 36,346
Effect of dilutive common stock options 125 206 136 209
--------- --------- ----------- -----------
Weighted average shares used for dilutive per share data 36,821 36,758 36,762 36,555
========= ========= =========== ===========
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CPC Reports Fourth Quarter and Fiscal 2005 Results
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Dec. 14, 2005
CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Amounts in thousands
September 30, September 30,
2005 2004
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 25,612 $ 27,628
Management accounts receivable 51,293 43,776
Accounts receivable - other 15,204 14,594
Current portion of notes receivable 5,818 6,010
Prepaid expenses 8,630 13,045
Assets held for sale 49,048 23,724
Available for sale securities 4,606 4,364
Refundable income taxes -- 1,461
Deferred income taxes 20,184 11,177
--------- ---------
Total current assets 180,395 145,779
Notes receivable, less current portion 9,842 41,940
Property, equipment and leasehold improvements, net 327,391 380,256
Contract and lease rights, net 80,064 89,015
Goodwill, net 232,443 232,562
Investment in and advances to partnerships and joint ventures 4,443 7,824
Other assets 31,419 32,252
--------- ---------
Total Assets $ 865,997 $ 929,628
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations $ 1,764 $ 46,867
Accounts payable 83,604 82,224
Accrued expenses 52,809 46,807
Management accounts payable 24,346 24,640
Income taxes payable 12,389 --
--------- ---------
Total current liabilities 174,912 200,538
Long-term debt and capital lease obligations, less current portion 98,212 159,188
Subordinated convertible debentures 78,085 78,085
Deferred rent 21,252 24,450
Deferred income taxes 19,890 17,293
Other liabilities 21,154 14,977
--------- ---------
Total liabilities 413,505 494,531
--------- ---------
Minority interest 528 64
Shareholders' equity:
Common stock 368 366
Additional paid-in capital 251,784 249,452
Accumulated other comprehensive income, net 3,429 879
Retained earnings 197,088 185,041
Other (705) (705)
--------- ---------
Total shareholders' equity 451,964 435,033
--------- ---------
Total Liabilities and Shareholders' Equity $ 865,997 $ 929,628
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CPC Reports Fourth Quarter and Fiscal 2005 Results
Page 6
Dec. 14, 2005
CENTRAL PARKING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Amounts in thousands
YTD September 30, YTD September 30,
2005 2004
----------------- ----------------
Cash flows from operating activities:
Net earnings $ 14,176 $ 16,993
Loss from discontinued operations 19,546 1,409
--------- --------
Earnings from continuing operations 33,722 18,402
Adjustments to reconcile earnings from continuing operations to net cash
provided by operating activities - continuing operations:
Depreciation and amortization 29,497 32,635
Equity in partnership and joint venture losses 474 2,984
Distributions from partnerships and joint ventures 2,092 1,412
Loss on impairment of goodwill 454 --
Property-related gains, net (53,572) (7,654)
Gain on derivative instruments (3,006) --
Deferred income taxes (7,106) 3,106
Minority interest 1,330 2,999
Changes in operating assets and liabilities:
Management accounts receivable (7,730) (6,605)
Accounts receivable - other (622) 6,106
Prepaid expenses 4,402 (1,621)
Other assets (8,102) (7,211)
Accounts payable, accrued expenses and other liabilities 13,264 (6,096)
Management accounts payable (302) (749)
Deferred rent (3,198) (3,119)
Refundable income taxes 1,461 4,022
Income taxes payable 12,527 273
--------- --------
Net cash provided by operating activities - continuing operations 15,585 38,884
Net cash (used) provided by operating activities - discontinued operations (13,804) 2,755
--------- --------
Net cash provided by operating activities 1,781 41,639
--------- --------
Cash flows from investing activities:
Proceeds from disposition of property and equipment 81,541 69,408
Purchase of equipment and leasehold improvements (12,279) (13,274)
Purchase of property -- (1,725)
Purchase of lease rights -- (4,530)
Incentive payment for USA Parking -- 2,250
Other investing activities 33,122 227
--------- --------
Net cash provided by investing activities 102,384 52,356
--------- --------
Cash flows from financing activities:
Dividends paid (2,129) (2,184)
Net (repayments) borrowings under revolving credit agreement 6,625 (59,000)
Proceeds from issuance of notes payable, net of issuance costs 8,854 2,933
Principal repayments on long-term debt and capital lease obligations (121,367) (39,065)
Payment to minority interest partners (565) (3,244)
Proceeds from issuance of common stock and exercise of stock options 2,334 2,897
--------- --------
Net cash used by financing activities (106,248) (97,663)
--------- --------
Foreign currency translation 67 (276)
--------- --------
Net decrease in cash and cash equivalents (2,016) (3,944)
Cash and cash equivalents at beginning of period 27,628 31,572
--------- --------
Cash and cash equivalents at end of period $ 25,612 $ 27,628
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CPC Reports Fourth Quarter and Fiscal 2005 Results
Page 7
Dec. 14, 2005
Key Financial Metrics
(Includes continuing and discontinued operations)
(In thousands)
QTD Ended September 30, YTD Ended September 30,
2005 2004 2005 2004
------- -------- ------- -------
Net earnings $ 9,615 ($ 905) $14,176 $16,993
Interest expense 3,985 5,255 17,949 20,523
Income tax expense 18,313 447 23,823 12,721
Depreciation/amortization 6,876 7,376 27,328 30,756
Minority interest 148 289 1,415 2,724
------- -------- ------- -------
EBITDA $38,937 $ 12,462 $84,691 $83,717
======= ======== ======= =======
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.
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