Exhibit 99
Standard Parking Corporation Reports
Strong Second Quarter Results; Raises Current Year Guidance
CHICAGO--(BUSINESS WIRE)--Aug. 10, 2005--Standard Parking
Corporation (NASDAQ:STAN), one of the nation's largest providers of
parking management services, today announced its results for the
second quarter and first half of 2005.
Second Quarter Highlights
-- Revenue growth drives 9% increase in gross profit
-- Operating income increases by 17% over 2004, with 2004
adjusted for pre-IPO management fees and stock compensation
charge
-- EPS of $0.40 per diluted share
-- EPS pro forma for income taxes of $0.29 per diluted share
-- Free cash flow of $2.8 million
-- Repurchased 76,742 shares of common stock for $1.3 million
2005 Guidance Increased
-- EPS expectation of $1.40 - $1.50 (an increase of $0.05)
-- EPS expectation, pro forma for income taxes, of $1.02 - $1.12
(an increase of $0.02)
-- Free cash flow of $17 million or higher (an increase of $2
million)
James A. Wilhelm, President and Chief Executive Officer, said,
"This earnings announcement marks the end of our fourth full quarter
as a public equity company. We are pleased that we have been able to
deliver results that meet our high internal standards, with operating
performance that is at or above expectations throughout the Company.
"As we said at the end of the first quarter, ours is a somewhat
seasonal business with momentum picking up during the year. Our second
quarter performance highlights this phenomenon. We are particularly
pleased this quarter with the strong performance of our lower-risk
management contract portfolio where gross profit increased by more
than 9%."
Second Quarter Operating Results
Gross profit for the second quarter increased by almost 9% to
$17.5 million from $16.1 million a year ago. This increase was
attributable to continued improvement in performance by locations open
for more than one year ("same locations"). General and administrative
expenses were up 6% for the quarter over last year, reflecting the
expected additional costs of being a public equity company, which
Standard Parking did not incur last year until its June 2004 IPO.
Compared to the 2005 first quarter, however, general and
administrative expenses were flat.
Operating income for the quarter reflects a strong performance,
increasing by 17% to $6.8 million after adjusting the 2004 financials
for management fees to the former parent that were discontinued at the
time of the IPO and an IPO-related non-cash stock option compensation
expense.
Net of the change in cash, free cash flow of $2.0 million was
generated during the quarter. Of that amount, the Company used $1.3
million to purchase shares under the terms approved by the Board of
Directors in early March of this year, and used the remaining $0.7
million to pay down debt. The debt reduction, along with the impact of
2004's IPO and refinancing of the Company's senior credit agreement,
resulted in a $1.7 million reduction in interest expense from $4.2
million in last year's second quarter to $2.5 million for the second
quarter of 2005.
Net income for the quarter was $4.3 million, or $0.40 per diluted
share, versus a loss of $0.8 million a year ago. Last year's reported
loss included $3.0 million of accrued dividends on preferred stock
issues that have since been retired, as well as a net gain on
extinguishment of debt of $3.9 million related to the Company's June
2004 IPO. On a pro forma basis, the statutory tax rate of 39% has been
reduced to 30% based on the Company's assumed ability to use its
substantial net operating loss carry-forwards to shield income for a
period beyond five years. Net income for the quarter, as adjusted for
the pro forma effect of income taxes, was $3.1 million, or $0.29 per
diluted share. Due primarily to the continued utilization of operating
loss carry-forwards, the cash tax rate for federal and state income
taxes is expected to be under 5% for 2005.
Total parking services revenue for the quarter, excluding
reimbursement of management contract expense, was up by 6% to $62.5
million from $58.7 million a year ago, led by 8% growth in management
contract revenue. Reimbursement of management contract expense is
excluded because its timing and amount fluctuate substantially for
reasons unrelated to the Company's parking services revenue and
because it has no impact on gross profit.
Recent Developments
The operating results at Bradley International Airport continue to
improve significantly. During the second quarter of this year, the
Company received reimbursements of deficiency payments totaling nearly
$0.6 million. For the first six months of 2005, the Company has
received net repayments of $80,000 compared with $1.4 million of
deficiency payments made during the first six months of 2004. The
Company expects to receive additional repayments in the future.
New business activity remained strong during the second quarter
with significant new contract wins reported across the country,
particularly in the airport and university/hospital markets. Second
quarter contract awards and developments include:
-- Award of a three-year contract to manage parking operations at
the Cincinnati/Northern Kentucky International Airport that
includes over 16,000 parking spaces.
-- Commencement in June of skycap service at Rapid City Regional
Airport, representing the Company's entry into the skycap /
wheelchair assist arena.
-- Award of a contract to operate Valley International Airport in
Harlingen, Texas, the Rio Grande Valley's leading airport.
-- Award of two new contracts to operate off-airport "Park Air
Express" parking and shuttle operations serving the
Dallas/Fort Worth International Airport in Texas and the
Burbank Airport in California.
-- Parking management and enforcement contract award by Boston
University, encompassing 21 parking facilities and 3,800
spaces.
-- Contract award for George Mason University, encompassing
12,000 total spaces in two garages, up to 15 surface lots, and
parking meters. The contract was won from a 10-year incumbent
operator through a competitive bid process.
-- Contract award for Foothills Hospital in Calgary, Alberta,
which serves more than half a million patients each year with
a parking operation encompassing over 1,500 spaces.
-- Google valet parking operation award, to provide valet
assistance for overflow parking at Google's California
corporate headquarters with over 3,000 parking spaces. The
Company currently operates Google's East Bay employee
shuttles.
-- Contract award for the Bank of America Plaza in Dallas, Texas,
containing the tallest building in downtown Dallas. The
contract includes the operation of two garages and three
surface lots totaling over 1,750 spaces.
-- Contract to direct traffic for the Lakewood Church in Houston,
Texas, the largest church in the United States, which had
57,000 people attend services on opening weekend.
Mr. Wilhelm observed, "While we are seeing an increase in new
business activity across the board, we have been especially successful
in winning new contracts in the university and hospital markets, where
the property owners are increasingly interested in outsourcing the
operation of their parking facilities. We see continued growth
opportunities in these venues as well as in local municipalities,
which are also beginning to pursue outsourcing of their varied parking
operations."
Year-to-Date Results
Gross profit for the first six months of 2005 increased by more
than 6% to $33.5 million as compared with $31.6 million for the same
period last year, due to solid growth in same location profit from
both lease and management locations. Top line revenue, excluding
reimbursed management contract expenses, also increased year over year
by over 7% from $115 million to $123 million. As of June 30, 2005, the
Company operated 1,904 locations, an increase of 16 locations since
the end of 2004. General and administrative expenses for the first six
months of 2005 increased by almost 7% over the same period last year
due to additional costs of being a public company such as expenses
incurred with meeting the compliance requirements of Sarbanes-Oxley.
Commenting on the Company's first-half performance, Mr. Wilhelm
said, "I am pleased that our strong overall business performance
during the first half of this year, coupled with the EPS benefit
derived from the stock repurchases that we completed in that six-month
period, enable us to increase our earnings guidance."
Financial Outlook
Based on the year-to-date results, the Company is increasing its
net earnings guidance for the 2005 year to $1.40 - $1.50 per diluted
share and $1.02 - $1.12 per diluted share, pro forma for income taxes.
The Company's expectation for free cash flow also has increased to $17
million or higher for the year.
For pro forma guidance purposes, the statutory tax rate of 39% has
been reduced to 30% based on the Company's assumed ability to use its
substantial net operating loss carry-forwards to shield income for a
period beyond five years. The Company's reported tax rates are
expected to be substantially less than the statutory rates, due to the
ability to offset future earnings against net operating loss
carry-forwards. In addition, the Company's tax provision may further
be affected by adjustments to its valuation allowance for its deferred
tax assets. The timing of the recognition of these tax benefits may
result in significant fluctuations in reported GAAP results.
Conference Call
The Company's quarterly earnings conference call will be held at
9:00 am (CDT) on Thursday, August 11, 2005 and is available live and
in replay to all analyst/investors through a webcast service. To
listen to the live call, individuals are directed to the Company's
investor relations page at www.standardparking.com or www.earnings.com
at least 15 minutes early to register, download and install any
necessary audio software. For those who cannot listen to the live
broadcast, replays will be available shortly after the call on either
website and can be accessed for 30 days after the call.
Standard Parking is a leading national provider of parking
facility management services. The Company provides on-site management
services at multi-level and surface parking facilities for all major
markets of the parking industry. The Company manages approximately
1,900 parking facilities, containing over one million parking spaces
in close to 300 cities across the United States and Canada. In
addition, the Company manages parking-related and shuttle bus
operations serving more than 60 airports.
More information about Standard Parking is available at
www.standardparking.com. You should not construe the information on
this website to be a part of this report. Standard Parking's 2004
annual report filed on Form 10-K, its periodic reports on Form 10-Q
and 8-K and its Registration Statement on Form S-1 (333-112652) are
available on the Internet at www.sec.gov and can also be accessed
through the Investor Relations section of the Company's website.
DISCLOSURE NOTICE: The information contained in this document is
as of August 10, 2005. The Company assumes no obligation to update any
forward-looking statements contained in this document as a result of
new information or future events or developments.
This document and the attachments contain forward-looking
information about the Company's financial results that involve
substantial risks and uncertainties. You can identify these statements
by the fact that they use words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," "outlook," and other
words and terms of similar meaning in connection with any discussion
of future operating or financial performance. Among the factors that
could cause actual results to differ materially are the following: an
increase in owner-operated parking facilities; changes in patterns of
air travel or automobile usage, including effects of changes in gas
and airplane fuel prices, effects of weather on travel and
transportation patterns or other events affecting local, national and
international economic conditions; implementation of the Company's
operating and growth strategy, including possible strategic
acquisitions; the loss, or renewal on less favorable terms, of
management contracts and leases; player strikes or other events
affecting major league sports; changes in general economic and
business conditions or demographic trends; ongoing integration of past
and future acquisitions in light of challenges in retaining key
employees, synchronizing business processes and efficiently
integrating facilities, marketing and operations; changes in current
pricing; development of new, competitive parking-related services;
changes in federal and state regulations including those affecting
airports, parking lots at airports and automobile use; extraordinary
events affecting parking at facilities that we manage, including
emergency safety measures, military or terrorist attacks and natural
disasters; the Company's ability to renew the Company's insurance
policies on acceptable terms, the extent to which the Company's
clients purchase insurance through us and the Company's ability to
successfully manage self-insured losses; the Company's ability to form
and maintain relationships with large real estate owners, managers and
developers; the Company's ability to provide performance bonds on
acceptable terms to guarantee the Company's performance under certain
contracts; the loss of key employees; the Company's ability to
develop, deploy and utilize information technology; the Company's
ability to refinance the Company's indebtedness; the Company's ability
to consummate transactions and integrate newly acquired contracts into
the Company's operations; availability, terms and deployment of
capital; the amount of net operating losses, if any, the Company may
utilize in any year and the ability of Steamboat Industries LLC and
its subsidiary to control the Company's major corporate decisions. A
further list and description of these risks, uncertainties, and other
matters can be found in the Company's Annual Report on Form 10-K for
the fiscal year ended December 31, 2004, in its periodic reports on
Forms 10-Q and 8-K, and in its Registration Statement on Form S-1
(333-112652).
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share and per share data)
June 30, December
2005 31, 2004
----------- -----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $8,718 $10,360
Notes and accounts receivable, net 34,754 34,608
Prepaid expenses and supplies 2,965 2,330
----------- -----------
Total current assets 46,437 47,298
Leaseholds and equipment, net 15,576 16,481
Long-term receivables, net 6,400 7,317
Advances and deposits 1,705 1,816
Goodwill 118,367 118,342
Intangible and other assets, net 3,623 3,848
----------- -----------
Total assets $192,108 $195,102
=========== ===========
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $25,334 $26,107
Accrued and other current liabilities 22,691 25,794
Current portion of long-term borrowings 3,406 3,512
----------- -----------
Total current liabilities 51,431 55,413
Long-term borrowings, excluding current
portion 101,724 106,238
Other long-term liabilities 21,649 18,111
Convertible redeemable preferred stock,
series D 1 1
Common stockholders' equity:
Common stock, par value $.001 per share;
12,000,100 shares authorized; 10,219,138
shares issued and outstanding 10 10
Additional paid-in capital 189,741 193,565
Accumulated other comprehensive income 11 116
Accumulated deficit (171,998) (178,352)
Treasury stock, at cost, 27,338 shares (461) -
----------- -----------
Total common stockholders' equity 17,303 15,339
----------- -----------
Total liabilities and common stockholders'
equity $192,108 $195,102
=========== ===========
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share data, unaudited)
Three Months Ended Six Months Ended
----------------------- -----------------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
----------------------- -----------------------
Parking services revenue:
Lease contracts $39,140 $37,120 $77,867 $72,241
Management contracts 23,315 21,575 45,132 42,448
----------- ---------- ----------- ----------
62,455 58,695 122,999 114,689
Reimbursement of
management
contract expense 84,903 82,207 167,435 169,928
----------- ---------- ----------- ----------
Total revenue 147,358 140,902 290,434 284,617
Cost of parking services:
Lease contracts 35,330 33,549 70,701 65,973
Management contracts 9,578 9,025 18,757 17,144
----------- ---------- ----------- ----------
44,908 42,574 89,458 83,117
Reimbursed management
contract expense 84,903 82,207 167,435 169,928
----------- ---------- ----------- ----------
Total cost of parking
services 129,811 124,781 256,893 253,045
Gross profit:
Lease contracts 3,810 3,571 7,166 6,268
Management contracts 13,737 12,550 26,375 25,304
----------- ---------- ----------- ----------
Total gross profit 17,547 16,121 33,541 31,572
General and administrative
expenses 9,210 8,665 18,304 17,148
Depreciation and
amortization 1,493 1,583 2,957 3,169
Management fee-parent
company - 750 - 1,500
Valuation allowance
related to long-term
receivables - - 900 -
Non-cash stock option
compensation expense - 2,293 - 2,293
----------- ---------- ----------- ----------
Operating income 6,844 2,830 11,380 7,462
Other expenses (income):
Interest expense 2,463 4,168 4,847 8,543
Interest income (77) (249) (154) (342)
Net gain from
extinguishment of
debt - (3,860) - (3,860)
----------- ---------- ----------- ----------
2,386 59 4,693 4,341
Income before minority
interest and income
taxes 4,458 2,771 6,687 3,121
Minority interest 87 145 208 242
Income tax expense 108 140 125 318
----------- ---------- ----------- ----------
Net income before preferred
stock dividends and
increase in value of
common stock subject
to put/call rights 4,263 2,486 6,354 2,561
Preferred stock
dividends - 3,045 - 7,243
Increase in value of
common stock subject
to put/call rights - 223 - 538
----------- ---------- ----------- ----------
Net income (loss) $4,263 ($782) $6,354 ($5,220)
=========== ========== =========== ==========
Common Stock Data:
Net income (loss) per
common share:
Basic $0.41 ($0.24) $0.61 ($3.23)
Diluted $0.40 ($0.24) $0.60 ($3.23)
Weighted average
common shares
outstanding:
Basic 10,288,457 3,229,817 10,372,806 1,614,908
Diluted 10,567,468 3,229,817 10,647,256 1,614,908
STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except for share and per share data, unaudited)
Six Months Ended
--------------------
June 30, June 30,
2005 2004
--------- ---------
Operating activities:
Net income (loss) $6,354 ($5,220)
Adjustments to reconcile net income (loss) to net
cash (used in) provided by operations:
Preferred stock dividends - 7,243
Increase in value of common stock subject to
put/call rights - 538
Depreciation and amortization 2,957 3,169
Non-cash interest expense - 279
Amortization of deferred financing costs 368 668
Amortization of carrying value in excess of
principal (88) (1,224)
Non-cash stock option compensation expense - 2,293
Provision for losses on accounts receivable 147 418
Valuation allowance related to long-term
receivables 900 -
Write-off of debt issuance costs - 2,385
Write-off of carrying value in excess of
principal related to the 14% senior
subordinated second lien notes - (8,207)
Change in operating assets and liabilities (1,156) (6,626)
--------- ---------
Net cash provided by (used in) operating
activities 9,482 (4,284)
Investing activities:
Purchase of leaseholds and equipment (408) (592)
Contingent purchase payments (171) (464)
--------- ---------
Net cash (used in) investing activities (579) (1,056)
Financing activities:
Net proceeds from initial public offering - 46,966
Repurchase of common stock subject to put/call
rights - (6,250)
Repurchase of common stock (4,299) -
Proceeds from exercise of stock options 14 -
Proceeds from (payments on) senior credit facility (3,800) 24,950
Payments on long-term borrowings (126) (75)
Payments on joint venture borrowings (301) (270)
Payments of debt issuance costs (118) (1,253)
Payments on capital leases (1,670) (1,081)
Repurchase of 14% senior subordinated second lien
notes - (57,734)
--------- ---------
Net cash (used in) provided by financing
activities (10,300) 5,253
Effect of exchange rate changes on cash and cash
equivalents (245) (126)
--------- ---------
(Decrease) in cash and cash equivalents (1,642) (213)
Cash and cash equivalents at beginning of period 10,360 8,470
--------- ---------
Cash and cash equivalents at end of period $8,718 $8,257
========= =========
Supplemental disclosures:
Cash paid during the period for:
Interest $4,535 $10,302
Income taxes 268 152
Supplemental disclosures of non-cash activity:
Debt issued for capital lease obligation $1,405 $1,027
Issuance of 14% senior subordinated second lien
notes - 375
Pro Forma Net Income
(in thousands, except for per share data)
Three Months Six Months
Ended Ended
June 30, 2005 June 30, 2005
--------------- ---------------
pro forma pro forma
per per
share(a) share(a)
Net income - as reported A $4,263 $0.40 $6,354 $0.60
Reported income tax
expense B 108 0.01 125 0.01
------- ------- ------- -------
Pre-tax income C = A + B 4,371 0.41 6,479 0.61
Effective income
tax rate
@ 30%(1) D = - (C x 30%) (1,311) (0.12) (1,944) (0.18)
Reported income
tax expense B 108 0.01 125 0.01
------- ------- ------- -------
Total pro forma tax
adjustment E = D + B (1,203) ($0.11) (1,819) ($0.17)
Pro forma net income F = A + E $3,060 $0.29 $4,535 $0.43
(a) Weighted average common shares
outstanding:
Basic shares outstanding 10,288 10,373
Effect of dilutive common
stock options 279 274
------- -------
Fully diluted shares 10,567 10,647
2005 Earnings Per Share
Guidance Range
Low High
------- -------
Expected reportable earnings per
diluted share for 2005 $1.40 $1.50
Estimated 2005 GAAP income tax
expense 0.06 0.10
------- -------
Pre-tax income 1.46 1.60
Effective income tax
at 30% rate (1) (0.44) (0.48)
------- -------
Pro forma earnings per diluted share
for 2005 $1.02 $1.12
(1) For pro forma guidance purposes, the statutory tax rate of 39%
has been reduced to 30% based on the Company's assumed ability to use
its substantial net operating loss carry-forwards to shield income
for a period beyond five years. The Company's reported tax rates are
expected to be substantially less than the statutory rates, due to
the ability to offset future earnings against net operating loss
carry-forwards. In addition, the Company's tax provision may further
be affected by adjustments to its valuation allowance for its
deferred tax assets. The timing of the recognition of these tax
benefits may result in significant fluctuations in reported GAAP
results.
Free Cash Flow
(in thousands)
Three Six
months months
ended ended
June 30, June 30,
2005 2005
------------------
Operating income $6,844 $11,380
Depreciation and amortization 1,493 2,957
Valuation allowance related to long-term
receivables - 900
Income tax paid (93) (268)
Minority interest (87) (208)
Change in assets and liabilities (3,920) (989)
Capital expenditures and contingent purchase
payments (235) (579)
-------- ---------
Operating cash flow $4,002 $13,193
Cash interest paid (1,163) (4,535)
-------- ---------
Free Cash Flow (1) $2,839 $8,658
(Increase) decrease in cash and cash equivalents (821) 1,642
-------- ---------
Free cash flow, net of change in cash $2,018 $10,300
(Uses)/Sources of cash:
Proceeds from (payments on) senior credit
facility $400 ($3,800)
(Payments) on long-term borrowings (1,100) (2,097)
(Payments) of debt issuance costs (36) (118)
Proceeds from exercise of stock options 14 14
(Repurchase) of common stock (1,296) (4,299)
-------- ---------
Total (uses) of cash ($2,018) ($10,300)
- ----------------------------------------------------------------------
(1) Reconciliation of Free Cash Flow to Consolidated Statements
of Cash Flow
Six Three Three
Months Months Months
June 30, March 31, June 30,
2005 2005 2005
-------- ------- --------
Net cash provided by operating activities $9,482 $6,198 $3,284
Net cash (used in) investing activities (579) (344) (235)
Effect of exchange rate changes on cash
and cash equivalents (245) (35) (210)
-------- ------- --------
Free cash flow $8,658 $5,819 $2,839
CONTACT: Standard Parking Corporation
G. Marc Baumann, 312-274-2199
mbaumann@standardparking.com