Exhibit 99
Standard Parking Corporation
Reports Solid Fourth Quarter; Full-Year 2005 EPS of $1.39 Exceeds
Prior Guidance; Company Expects Another Strong Performance in 2006
CHICAGO--(BUSINESS WIRE)--March 8, 2006--Standard Parking
Corporation (NASDAQ:STAN), one of the nation's largest providers of
parking management services, today announced its results for the
fourth quarter and full-year 2005. A solid fourth quarter capped a
strong fiscal 2005, yielding full-year net income of $14.7 million and
earnings per share of $1.39, compared with $2.6 million and $0.42 in
the prior year. 2005 free cash flow was $26.5 million or $2.51 per
share.
2005 Highlights
-- Revenue (excluding reimbursed management contract expense) and
gross profit growth of 7% and 9%, respectively.
-- EPS of $1.39, exceeded guidance of $1.27 - $1.32.
-- Free cash flow of $26.5 million, or $2.51 per share.
-- Total debt reduction of $17.6 million; net debt / EBITDA
reduction from 3.3x to 2.7x.
-- Share repurchase of $6 million.
2006 Guidance
-- EPS expected to be in a range of $1.50 - $1.60.
-- Pre-tax income expected to increase more than 25% over 2005.
-- Free cash flow expected to be $20 million or higher.
-- Board authorization to repurchase up to $7.5 million of common
stock.
Commentary
James A. Wilhelm, President and Chief Executive Officer, said, "We
are pleased to report 2005 earnings per share that exceeded prior
guidance. As we started 2005, we were confident that the successful
IPO and the subsequent momentum from 2004 would carry us to our best
year ever. We achieved this despite two significant challenges. Over
the course of the year, we recognized a $1.2 million loss, or ($0.11)
per share, related to a contract in Minnesota. In the second half of
the year, we had to rebuild our New Orleans parking operations in the
aftermath of Hurricane Katrina, which impacted EPS by ($0.16) per
share. Despite these challenges, in our first full year as a public
company we achieved earnings per share of $1.39, compared with $0.42
in the prior year, which exceeded our most recent guidance range of
$1.27 - $1.32. Both our actual results and our guidance reflect the
use of our substantial NOLs to shield from tax all of our 2005 book
income. Our location retention rate for the year improved to 91% from
88% a year ago, and we had a net increase of 20 locations.
"During the year, we also entered the last phase of Sarbanes-Oxley
documentation and testing of our internal controls, costing ($0.08)
per share, which required our organization's concentrated focus. We
have now completed the assessment of our internal control as it
relates to financial reporting, and we are pleased to report that the
controls were found to be effective and without material weaknesses.
Our independent auditors, Ernst & Young, LLP, have completed their
evaluation and testing of our internal control over financial
reporting and expect to issue an unqualified opinion."
Fourth Quarter Operating Results
Gross profit for the fourth quarter increased by 12% to $18.9
million from $16.9 million a year ago. Excluding the $0.9 million
impact of Hurricane Katrina and $1.6 million in favorable insurance
loss experience relating to previous quarters in the current year,
gross profit in the fourth quarter increased by 8%, driven by strong
same location revenue increases at both lease and management
locations.
General and administrative expenses increased by $2.2 million or
26% over the 2004 fourth quarter. General and administrative expenses
in the fourth quarter of 2005 included $0.5 million for expenses
related to the Sound Parking acquisition and termination of the
planned acquisition of System Parking, and $0.2 million for outside
consultants and auditors related to Sarbanes-Oxley compliance.
Net income for the 2005 fourth quarter was $4.1 million, or $0.39
per diluted share, as compared with $4.3 million, or $0.40 per diluted
share, a year ago. Earnings per share for the 2005 fourth quarter was
impacted by Hurricane Katrina by ($0.10) per share,
acquisition-related expenses of ($0.05) per share and deferred tax
expense of ($0.05) per share. Offsetting these negative factors was
$0.07 per share attributable to premium and interest income resulting
from the partial repayment of a long-term receivable related to
Bradley Airport, and $0.15 per share attributable to favorable
insurance loss experience relating to previous quarters in the current
year.
Given the complexity of the Company's tax situation due to the
large amount of net operating loss carryforwards, a more meaningful
measure of year-over-year growth is pre-tax income. Pre-tax income for
the fourth quarter of 2005 was $0.46 per share, an increase of 28%
over the fourth quarter of 2004.
Total revenue for the quarter, excluding reimbursement of
management contract expense, was up by 2% to $62.0 million from $60.6
million a year ago. Reimbursement of management contract expense is
excluded because its timing and amount fluctuate substantially for
reasons unrelated to the Company's parking services revenue. Strong
15% growth in management contract revenue was offset by a 5% decrease
in lease revenue, primarily due to lost business in New Orleans.
Excluding New Orleans, same location revenue increased 7% for lease
contracts and almost 16% for management contracts.
Cash and cash equivalents at December 31, 2005 of $10.8 million
were relatively unchanged from a year ago. Net of the change in cash,
free cash flow of $12.0 million was generated during the quarter, all
of which was used to pay down debt. Consequently, despite an increase
in prevailing interest rates, the Company was able to hold interest
expense relatively flat year-to-year.
Recent Developments
During the 2005 fourth quarter, the Company received reimbursement
of Bradley Airport deficiency payments totaling $1.0 million compared
with having made $0.2 million in net deficiency payments a year ago.
For the year, net reimbursement of deficiency payments totaled $1.5
million compared with the Company's having made $2.0 million of net
deficiency payments during the same period of 2004, resulting in a
positive swing of $3.5 million in cash flow. In connection with these
reimbursements, the Company recognized $0.8 million in premium and
interest income in the fourth quarter of 2005.
In January 2006, the Company consummated its previously announced
acquisition of the 2 shuttle operations and 55 parking locations
operated by Sound Parking. Provisions in long-term employment
contracts that the Company entered into with Sound's former principals
incentivize them to retain the Company's existing contracts and to
expand the Company's presence in the States of Washington, Oregon,
Idaho and Alaska.
Commenting on the Sound acquisition, Mr. Wilhelm said, "The
acquisition of Sound Parking gives us a solid anchor in the Pacific
Northwest, and adding the principals of Sound Parking will enhance our
understanding of that marketplace. Working together, Standard Parking
can provide the capital, experience and resources to pursue some of
the larger contracts in the region."
The Company's new contract additions during the quarter highlight
the importance of maintaining strong relationships with national and
regional real estate developers and REITs. The Company's strong track
record with major real estate concerns such as Crescent, Hines,
Tishman Speyer and Prime Group Realty Trust has enabled it to win new
contracts or renew existing contracts at:
-- Fountain Place, Dallas (Crescent Real Estate Equities) - an
I.M. Pei designed landmark building, comprising over 1.2
million square feet and 1,200 parking spaces.
-- One IBM Plaza, Chicago (Prime Group Realty) - A premier
building designed by renowned architect Mies Van Der Rohe. The
property contains over 1.5 million square feet of office space
and 850 parking spaces.
-- 200 Park Avenue (the MetLife Building), New York (Tishman
Speyer) - a prime office building in midtown Manhattan. The
operating lease was renewed for a multi-year term.
-- One South Dearborn, Chicago (Hines) - a new office building
containing over 800,000 square feet of space and a 160 space
garage.
Other notable contract developments during the quarter include:
-- The Company was awarded a contract to operate two valet
locations, as well as visitor and guest parking, at the Grand
Hyatt in New York City, an entry into the New York premier
hotel market.
-- Bank of America, an existing client for which Standard Parking
operates over 125 properties, selected the Company to operate
its Los Angeles shuttle program. This program transports Bank
of America employees between Union Station and the Bank's
various offices.
Full Year 2005 Results
Gross profit for the full year 2005 increased 9% to $69.8 million
as compared with $63.9 million for 2004 due to solid growth in same
location profit from both lease and management locations.
General and administrative expenses for the year increased by 16%
over the same period last year due primarily to the additional costs
of being a public company, including $0.8 million related to
Sarbanes-Oxley compliance, as well as $0.6 million in
acquisition-related expenses. More significant from a long term
perspective, during the year the Company invested significant
resources to support growth initiatives.
Operating income for the year was up by almost 20% to $23.6
million from $19.7 million a year earlier, although the mid-year 2004
IPO does not permit a clear year over year comparison.
Total revenue, excluding reimbursed management contract expense,
also increased year over year by almost 7% to $248.0 million in 2005
from $232.5 million in 2004 . At the end of 2005, the Company operated
1,906 locations, a net increase of 20 during the year. The Company's
retention rate for the full year 2005 was 91%, compared with 88% in
2004. The retention rate represents the percentage of locations
retained for a twelve month period.
Capital expenditures totaled $4.8 million in 2005, and the Company
also entered into $2.6 million of new capital lease obligations
intended primarily to fund the purchase of shuttle busses.
Free cash flow of $26.5 million was generated during 2005 of which
$6.0 million was used to repurchase shares and $20.5 million was used
to pay down debt. Approximately $8.6 million of this free cash flow
was due to fluctuations in working capital, long-term receivables and
reserves, resulting in underlying free cash flow generated by the
business of approximately $17.9 million. Net debt (total debt less
cash) of $81.3 million at year-end was below the range of $85 - $95
million projected at the beginning of the year.
Wilhelm concluded, "The Company's results for 2005 reflect that we
are performing as we set forth at the time of the IPO. We are meeting
the key metrics by which we are measured - growth in gross profit and
maintaining or increasing our retention rate. We are signing new
business at a rate that exceeds lost business, and our new contracts
on a per location basis are more profitable than business we have not
renewed. Our performance has resulted in both EPS and cash flow
increases that have exceeded our guidance range.
"Our cash flow performance is particularly noteworthy not only
because it exceeds what we had set forth at the time of the IPO but
because it has enabled us to pay down debt, return value to
shareholders, position ourselves to opportunistically pursue
acquisitions and invest in strategic initiatives for the future to
fuel organic growth.
"These strategic initiatives include the incubation of follow-on
services as a means to increase same location sales in the future. In
the past we have been successful in developing transportation as an
auxiliary business and we're reaping the benefits of that. We continue
to look at other services that will help our clients control their
costs and enable us to solidify our client relationships across a
broader base."
2006 Financial Outlook
Earnings per share for fiscal year 2006 are expected to be in the
range of $1.50 - $1.60. This guidance reflects improving results in
New Orleans of $0.06 per share. Offsetting the recovery in New Orleans
will be the incurrence of stock option compensation expense recognized
in accordance with FAS 123R, estimated to be the equivalent of a
($0.04) per share charge. 2006 pre-tax income per share is expected to
be in the range of $1.74 - $1.84, an increase of 25% or more over
2005.
In addition, the Company expects to record a $2.0 million, or
($0.19) per share, deferred tax expense resulting from the deduction
of goodwill for tax but not book purposes.
Due to $62.6 million of net operating loss carryforwards as of
December 31, 2005, the Company anticipates that its book tax provision
for 2006 will be less than 15%. However, the timing of the recognition
of tax benefits may result in wide fluctuations in reported GAAP
results. The Company may recognize substantial reductions in the
valuation allowance on its deferred tax asset in future quarters. The
Company expects its cash tax rate to remain below 5% in 2006.
These guidance estimates assume 10.6 million diluted shares
outstanding and do not include the impact of any acquisitions or
mergers that might be completed during the year.
The Company anticipates capital expenditures of $4 - $5 million
during 2006.
Free cash flow, after capital expenditures, is expected to be $20
million or higher in 2006. The Company expects to continue using free
cash flow to:
-- Fund additional growth
-- Pay down debt
-- Return value to shareholders
After evaluating the $26.5 million of free cash flow that the
Company generated in 2005, the Board has decided to authorize the
Company to expend up to $7.5 million in 2006 to return value to its
shareholders through stock repurchases, subject to lenders' consent
and the Company's compliance with applicable covenants and tests.
Stock repurchases under this program will partially offset the EPS
impact of the charge incurred by reason of the Company's adoption of
FAS 123R.
Six executive vice presidents have notified the Company of their
intention to exercise and sell a collective total of approximately
43,000, or 26%, of their vested stock options for a variety of estate
planning, tax and other personal reasons. All but 3,000 of these
options were originally granted in January 2002 as an incentive to
position the Company for an eventual IPO, vested fully at the time of
the June 2004 IPO, and expire in January 2012.
During 2005, the Company used a portion of its free cash flow to
reduce total debt by $17.6 million, which lowered net debt to EBITDA
from 3.3x to 2.7x. A similar approach to 2006 would result in a
further de-levering of the Company, with the potential that its net
debt to EBITDA ratio could approach or fall below 2.0x by the end of
2006. Consequently, the Company is beginning to explore alternatives
for refinancing all or a portion of its debt in 2006. As part of this
process, the Company will evaluate its financial leverage, share
repurchase and dividend policies.
Conference Call
The Company's quarterly earnings conference call will be held at
10:00 am (CST) on Thursday, March 9, 2006 and will be 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 prior to the call in order 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 over 1,900
parking facilities, containing over one million parking spaces in
close to 300 cities across the United States and Canada, including
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 March 8, 2006. 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
CONSOLIDATED BALANCE SHEETS
(in thousands, except for share and per share data)
December 31,
-------------------
2005 2004
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $10,777 $10,360
Notes and accounts receivable, net 40,707 34,608
Prepaid expenses and supplies 2,217 2,330
Deferred income taxes 1,961 -
--------- ---------
Total current assets 55,662 47,298
Leaseholds and equipment:
Equipment 24,835 23,735
Leasehold improvements 17,782 17,687
Leaseholds 36,513 34,815
Construction in progress 2,514 2,385
--------- ---------
81,644 78,622
Less accumulated depreciation and amortization (64,228) (62,141)
--------- ---------
17,416 16,481
Other assets:
Long-term receivables, net 4,953 7,317
Advances and deposits 1,330 1,816
Goodwill 118,781 118,342
Intangible and other assets, net 3,211 3,848
--------- ---------
128,275 131,323
Total assets $201,353 $195,102
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $31,174 $26,107
Accrued rent 6,178 4,871
Compensation and payroll withholdings 8,041 8,595
Property, payroll and other taxes 1,933 1,760
Accrued insurance 3,973 2,788
Accrued expenses 10,028 7,780
Current portion of obligations under credit
agreements and other 977 773
Current portion of capital lease obligations 2,786 2,739
--------- ---------
Total current liabilities 65,090 55,413
Deferred income taxes 1,561 -
Long-term borrowings, excluding current portion:
Obligations under credit agreements 82,938 99,517
Capital lease obligations 3,460 4,120
Other 1,947 2,601
--------- ---------
88,345 106,238
Other long-term liabilities 21,944 18,111
Convertible redeemable preferred stock, series D
18%, par value $100 per share, 10 shares issued
and outstanding 1 1
Common stockholders' equity:
Common stock, par value $.001 per share;
12,000,100 shares authorized; 10,126,482 shares
issued and outstanding as of December 31, 2005,
and common stock, par value $.001 per share,
12,000,100 shares authorized; 10,487,003 shares
issued and outstanding in 2004 10 10
Additional paid-in capital 187,616 193,565
Accumulated other comprehensive income 419 116
Accumulated deficit (163,633) (178,352)
--------- ---------
Total common stockholders' equity 24,412 15,339
--------- ---------
Total liabilities and common stockholders' equity $201,353 $195,102
========= =========
STANDARD PARKING
CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for share and per share data)
Three Months Ended Twelve Months Ended
------------------------- -------------------------
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Parking services
revenue:
Lease contracts $37,573 $39,386 $154,099 $148,752
Management
contracts 24,397 21,175 93,876 83,712
------------ ------------ ------------ ------------
61,970 60,561 247,975 232,464
Reimbursement of
management
contract
expense 85,991 84,646 338,679 331,171
------------ ------------ ------------ ------------
Total revenue 147,961 145,207 586,654 563,635
Costs and
expenses:
Cost of parking
services:
Lease contracts 34,790 35,444 141,037 134,548
Management
contracts 8,310 8,225 37,101 34,029
------------ ------------ ------------ ------------
43,100 43,669 178,138 168,577
Reimbursed
management
contract
expense 85,991 84,646 338,679 331,171
------------ ------------ ------------ ------------
Total cost of
parking services 129,091 128,315 516,817 499,748
Gross profit:
Lease contracts 2,783 3,942 13,062 14,204
Management
contracts 16,087 12,950 56,775 49,683
------------ ------------ ------------ ------------
Total gross profit 18,870 16,892 69,837 63,887
General and
administrative 10,681 8,474 38,922 33,470
Depreciation and
amortization 1,656 2,234 6,427 6,957
Management fee-
parent company - - - 1,500
Non-cash stock
option
compensation
expense - 6 - 2,299
Valuation allowance
related to long-
term receivables - - 900 -
------------ ------------ ------------ ------------
Total costs and
expenses 141,428 139,029 563,066 543,974
Operating income 6,533 6,178 23,588 19,661
Other expenses
(income):
Interest
expense 2,317 2,412 9,398 13,369
Interest income (624) (114) (841) (534)
Gain on
extinguishment
of debt and
other - 1 - (3,832)
------------ ------------ ------------ ------------
1,693 2,299 8,557 9,003
Income before
minority interest
and income taxes 4,840 3,879 15,031 10,658
Minority interest 56 53 326 349
Income tax
(benefit) expense 660 (449) (14) (112)
------------ ------------ ------------ ------------
Net income before
preferred stock
dividends and
increase in value
of common stock
subject to
put/call 4,124 4,275 14,719 10,421
Preferred stock
dividends - - - 7,243
Increase in value
of common stock
subject to
put/call - - - 538
------------ ------------ ------------ ------------
Net income $4,124 $4,275 $14,719 $2,640
============ ============ ============ ============
Common Stock Data:
Net income per
common share:
Basic $0.41 $0.41 $1.43 $0.44
Diluted $0.39 $0.40 $1.39 $0.42
Weighted average
common shares
outstanding:
Basic 10,126,482 10,487,003 10,265,785 6,040,389
Diluted 10,450,360 10,756,395 10,560,415 6,289,591
STANDARD PARKING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except for share and per share data)
Year Ended December 31,
-------------------------
2005 2004
------------ ------------
Operating activities:
Net income before preferred stock dividends
and increase in value of common stock
subject to put/call $14,719 $10,421
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation and amortization 5,782 6,868
Loss on sale of assets 645 89
Non-cash interest expense - 279
Amortization of deferred financing costs 764 1,015
Amortization of carrying value in excess of
principal (179) (1,308)
Non-cash stock-based compensation - 2,513
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)
Provision for losses on accounts receivable 533 464
Deferred income taxes (400) -
Changes in operating assets and liabilities:
Notes and accounts receivable (5,168) (6,035)
Prepaid assets 240 (894)
Other assets 358 (194)
Accounts payable 5,068 1,136
Accrued liabilities 8,092 2,812
------------ ------------
Net cash provided by operating activities 31,354 11,344
Investing activities:
Purchase of leaseholds and equipment (4,762) (1,378)
Proceeds from the sale of assets 29 26
Contingent purchase payments (316) (644)
------------ ------------
Net cash used in investing activities (5,049) (1,996)
Financing activities:
Net proceeds from initial public offering - 46,709
Proceeds from exercise of stock options 14 100
Repurchase of common stock (5,963) -
Repurchase of common stock subject to
put/call rights - (6,250)
Proceeds from long-term borrowings 360 -
Proceeds from senior credit facility - 54,550
Payments on senior credit facility (16,400) (40,650)
Payments on long-term borrowings (213) (145)
Payments on joint venture borrowings (618) (555)
Payments of debt issuance costs (126) (1,409)
Payments on capital leases (3,118) (2,423)
Repurchase of 14% senior subordinated second
lien notes - (57,734)
------------ ------------
Net cash used in financing activities (26,064) (7,807)
Effect of exchange rate changes on cash and
cash equivalents 176 349
------------ ------------
Increase in cash and cash equivalents 417 1,890
Cash and cash equivalents at beginning of
period 10,360 8,470
------------ ------------
Cash and cash equivalents at end of period $10,777 $10,360
============ ============
Cash paid during the period for:
Interest $8,670 $14,796
Income taxes 400 140
Supplemental disclosures of non-cash
activity:
Debt issued for capital lease obligations $2,644 $5,076
Redemption of redeemable preferred stock,
series C - (60,389)
Redemption of convertible redeemable
preferred stock, series D - (56,398)
Note assumed by our parent company related to
repurchase of common stock subject to
put/call rights - 5,000
Issuance of 14% senior subordinated second
lien notes - 375
STANDARD PARKING CORPORATION
FREE CASH FLOW
(in thousands)
Three months ended Twelve months ended
December 31, 2005 December 31, 2005
------------------- -------------------
Operating income $6,533 $23,588
Depreciation and
amortization 1,656 6,427
Valuation allowance related
to long-term receivables - 900
Income tax paid (38) (400)
Minority interest (56) (326)
Change in assets and
liabilities 3,573 10,011
Capital expenditures and
contingent purchase
payments (1,521) (5,049)
------------------- -------------------
Operating cash flow $10,147 $35,151
Cash interest paid (922) (8,670)
------------------- -------------------
Free Cash Flow (1) $9,225 $26,481
Decrease (Increase) in cash
and cash equivalents 2,773 (417)
------------------- -------------------
Free cash flow, net of change
in cash $11,998 $26,064
(Uses)/Sources of cash:
Proceeds from (payments on)
senior credit facility ($11,400) ($16,400)
Net (Payments) on long-term
borrowings (590) (3,589)
(Payments) of debt issuance
costs (8) (126)
Proceeds from exercise of
stock options - 14
(Repurchase) of common stock - (5,963)
------------------- -------------------
Total (uses) of cash ($11,998) ($26,064)
(1) Reconciliation of Free Cash Flow to Consolidated Statements of
Cash Flow
Twelve Months Nine Months Three Months
December 30, September 30, December 30,
2005 2005 2005
------------- ------------- -------------
Net cash provided by
operating activities $31,354 $20,590 $10,764
Net cash (used in)
investing activities (5,049) (3,528) (1,521)
Effect of exchange rate
changes on cash and cash
equivalents 176 194 (18)
------------- ------------- -------------
Free cash flow $26,481 $17,256 $9,225
STANDARD PARKING CORPORATION
EBITDA AND NET DEBT RECONCILIATION
Twelve months ended
December 31,
---------------------
2005 2004
---------- ----------
Net Income (1) $14,719 $10,421
Add:
Interest expense, net 8,557 12,835
Income tax (benefit) (14) (112)
Depreciation and amortization 6,427 6,957
EBITDA (2) $29,689 $30,101
Long-term borrowings, excluding current
portion $88,345 $106,238
Current portion of long-term borrowings 3,763 3,512
less: Cash and cash equivalents (10,777) (10,360)
Net Debt $81,331 $99,390
Net Debt to EBITDA multiple 2.7x 3.3x
(1) Net income before preferred stock dividends and increase in value
of common stock subject to put/call rights
(2) EBITDA does not represent and should not be considered as an
alternative to net income or cash flow from operations, as determined
by accounting principles generally accepted in the United States
(GAAP), and the Company's calculations thereof may not be comparable
to that reported by other companies. EBITDA is calculated above as it
is a basis upon which the Company assesses their liquidity position
and because we believe that this presents useful information to
investors regarding a company's ability to service and/or incur
indebtedness. This belief is based the Company's negotiations with its
lenders who have indicated that the amount of indebtedness it will be
permitted to incur will be based, in part, on measures similar to
their EBITDA. EBITDA does not take into account the Company's working
capital requirements, debt service requirements and other commitments
and, accordingly, are not necessarily indicative of amounts that may
be available for discretionary use.
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Location Count
December 31,
---------------------
2005 2004
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Managed facilities 1,643 1,591
Leased facilities 263 295
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Total facilities 1,906 1,886
CONTACT: Standard Parking Corporation
G. Marc Baumann, 312-274-2199
mbaumann@standardparking.com