EXHIBIT 99.1
(CENTRAL PARKING CORPORATION LOGO) NEWS
2401 21ST AVENUE SOUTH, SUITE 200, NASHVILLE, TN 37212 (615) 297-4255
FAX: (615) 297-6240
Contact: Jeff Heavrin
Senior Vice President and Chief Financial Officer
(615) 297-4255
jheavrin@parking.com
CENTRAL PARKING CORPORATION COMPLETES HOUSTON
REAL ESTATE TRANSACTION FOR $21 MILLION
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SECURES LONG-TERM LEASE OF ADJACENT GARAGE
NASHVILLE, TENN. -- (JAN. 13, 2006) -- Central Parking Corporation (NYSE: CPC)
today announced that it has completed a real estate transaction, including the
sale of three parcels in downtown Houston, for approximately $21 million. The
sale will result in a property-related gain included in continuing operations in
the Company's first quarter of fiscal 2006 of approximately $12.1 million on a
pre-tax basis.
The property was sold to Entertainment Development Group, which plans
to build a $200 million retail, office and residential development to be known
as Houston Pavilions on the site. In connection with the transaction, the
Company agreed to lease its 1,600 space garage at 1313 Main Street, which is
adjacent to the proposed project, to the development group for use as the
primary parking facility for the project. The initial term of the lease, which
begins January 1, 2007, is ten years with five renewal options of ten years
each. In addition, Central Parking retained a twenty-year right of first refusal
to operate any parking developed on the project site.
"Our involvement in this major, multi-use project represents a win-win
situation for Central Parking," said Emanuel J. Eads, President and Chief
Executive Officer. "First, the sale of this property is entirely consistent with
our previously announced strategy of pursuing opportunistic property sales where
the purchase price represents a substantial multiple to earnings. Second, we
secured a long-term commitment, on terms that are very favorable to us, from the
development group to lease an adjacent garage owned by Central Parking. This
long-term lease commitment not only will improve our returns from this garage
but will ensure steady cash flow from this facility for many years to come."
Central Parking Corporation, headquartered in Nashville, Tennessee, is
a leading provider of parking and transportation-related services. As of
September 30, 2005, the Company operated approximately 3,400 parking facilities
containing over 1.5 million spaces at locations in 37 states, the District of
Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland,
Chile, Colombia, Germany, Mexico, Peru, Poland, Spain, Switzerland, Venezuela
and Greece.
This press release contains historical and forward-looking information.
The words "goal," "plan," "expect," "guidance," "looking ahead," "assumptions,"
"estimates," "anticipates," "outlook," "intend," "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, 2005, filed with the
Securities and Exchange Commission and in 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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