EX-99.1 2 g92928exv99w1.txt EX-99.1 NEWS RELEASE 01/27/05 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: Mark Shapiro Media Contact: Richard Jonardi Senior Vice President and Communications Manager Chief Financial Officer (615) 297-4255 Central Parking Corporation rjonardi@parking.com (615) 297-4255 mshapiro@parking.com
CENTRAL PARKING CORPORATION REPORTS FISCAL 2005 FIRST QUARTER RESULTS NASHVILLE, Tenn. (Jan. 27, 2005) - Central Parking Corporation (NYSE:CPC) today announced earnings from continuing operations for the first quarter ended December 31, 2004 of $5.8 million, or $0.16 per diluted share, compared with $9.0 million, or $0.25 per diluted share earned in the first quarter of the previous fiscal year. Net earnings for the first quarter of fiscal 2005 were $3.5 million, or $0.10 per diluted share, compared with net earnings of $8.4 million, or $0.23 per diluted share for the first fiscal quarter ended December 31, 2003. Total revenues increased 3.9% to $304.6 million, while revenues excluding reimbursed management expenses declined 4.6% to $172.1 million from $180.4 million in the year-earlier period. "The results for the first quarter were in line with our expectations and consistent with our guidance for the year," said Monroe J. Carell, Jr., Chairman and Chief Executive Officer. "There are a number of positive aspects that bode well for the Company. We recently announced an amended credit facility that will reduce our interest rates and give us increased flexibility in the use of our cash flow. Our marketing initiatives in traditional parking segments and non-traditional transportation-related services were very successful during the quarter and resulted in a net gain of 46 new locations. "During the first quarter, the Company continued its program of opportunistic property sales, generating proceeds of $6.2 million. The pre-tax property-related gains included in the earnings from continuing operations for the first quarter amounted to $1.9 million, or $0.03 per share. Additionally, the Company utilized $3.7 million of cash to buy out two unprofitable leases. The buyouts reduced net earnings by $.06 per share and are reflected in the first quarter's results from discontinued operations. "Our goal for 2005 is to continue to focus on improving profitability and cash flow by controlling costs and adding new business. We also expect to maintain our program of property sales and plan to explore lease buy-outs to the extent the Company believes they will create shareholder value. Based on the current outlook, our earnings guidance remains unchanged. Earnings from continuing operations, including property-related gains or losses, for the fiscal year ending September 30, 2005, are expected to be in the range of $0.50 to $0.60 per share," Carell concluded. The Company also announced that an agreement in principle has been reached to settle the securities class action lawsuit pending against the Company in U.S. district court in Nashville. Under the agreement in principle, the Company's primary liability insurance carrier would fully fund -MORE- CPC Reports Fiscal First Quarter 2005 Results Page 2 Jan. 27, 2005 a $4.85 million payment that would be used to provide all benefits to shareholder class members and their counsel, and to cover related notice and administrative costs. The agreement in principle is subject to various conditions, including documentation of all settlement terms, preliminary approval by the court, notice to shareholders and final court approval of the agreement's fairness and adequacy. The Company continues to deny the allegations made in the lawsuit, and its agreement to settle the matter is not an admission of wrongdoing by the Company or the individual defendants. The Company said that a separate shareholder derivative action pending in Davidson County, Tennessee Chancery Court has been dismissed. The court entered an agreed order granting the defendants' motion for summary judgment in that matter. A conference call regarding this release is scheduled for today, January 27, 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 rebroadcast of the call at www.parking.com or www.fulldisclosure.com. Central Parking Corporation, headquartered in Nashville, Tennessee, is a leading global provider of parking and transportation management services. As of December 31, 2004 the Company operated more than 3,400 parking facilities containing more than 1.5 million spaces at locations in 37 states, the District of Columbia, Canada, Puerto Rico, the United Kingdom, the Republic of Ireland, Mexico, Chile, Peru, Colombia, Venezuela, Germany, Switzerland, Poland, Spain and Greece. This press release contains historical and forward-looking information. The words "expectations," "guidance," "goal," "outlook," "expect", "expects,' "expected," "estimates," "anticipates," "assumptions," "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 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; and the impact of claims and litigation, including but not limited to, the securities class action lawsuit pending against the Company; 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, 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. -MORE- CPC Reports Fiscal First Quarter 2005 Results Page 3 Jan. 27, 2005 CENTRAL PARKING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Amounts in thousands, except per share data QTD ENDED DECEMBER 31, 2004 2003 --------- --------- Revenues: Parking $ 141,362 $ 148,225 Management contracts 30,767 32,209 --------- --------- 172,129 180,434 Reimbursement of management contract expenses 132,511 112,723 --------- --------- Total revenues 304,640 293,157 Costs and expenses: Cost of parking 126,703 130,856 Cost of management contracts 15,233 13,680 General and administrative 18,860 18,414 --------- --------- 160,796 162,950 Reimbursed management contract expenses 132,511 112,723 --------- --------- Total costs and expenses 293,307 275,673 Property-related gains (losses), net 1,881 1,242 --------- --------- Operating earnings (losses) 13,214 18,726 Other income (expenses): Interest income 1,206 1,248 Interest expense (3,913) (4,254) Interest expense -subordinated debentures (1,045) (1,045) Equity in partnership and joint venture earnings 257 548 --------- --------- Earnings (loss) from continuing operations before minority interest and income taxes 9,719 15,223 Minority interest (303) (976) --------- --------- Earnings (loss) from continuing operations before income taxes 9,416 14,247 Income tax (expense) benefit (3,643) (5,285) --------- --------- Earnings (loss) from continuing operations 5,773 8,962 --------- --------- Discontinued operations, net of tax (2,293) (567) --------- --------- Net earnings (loss) $ 3,480 $ 8,395 ========= ========= Basic earnings (loss) per share: Earnings (loss) from continuing operations $ 0.16 $ 0.25 Discontinued operations, net of tax (0.06) (0.02) --------- --------- Net earnings (loss) $ 0.10 $ 0.23 ========= ========= Diluted earnings (loss) per share: Earnings (loss) from continuing operations $ 0.16 $ 0.25 Discontinued operations, net of tax (0.06) (0.02) --------- --------- Net earnings (loss) $ 0.10 $ 0.23 ========= ========= Weighted average shares used for basic per share data 36,564 36,159 Effect of dilutive common stock options 85 46 --------- --------- Weighted average shares used for dilutive per share data 36,649 36,205 ========= =========
-MORE- CPC Reports Fiscal First Quarter 2005 Results Page 4 Jan. 27, 2005 CENTRAL PARKING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Amounts in thousands DECEMBER 31, SEPTEMBER 30, 2004 2004 ------------ ------------- ASSETS Current assets: Cash and cash equivalents $ 31,353 $ 27,628 Management accounts receivable 58,799 40,779 Accounts receivable - other 11,907 9,334 Current portion of notes receivable 7,572 6,010 Prepaid expenses 16,613 13,045 Assets held for sale 25,517 23,724 Refundable income taxes 21 1,461 Deferred income taxes 10,930 11,177 --------- --------- Total current assets 162,712 133,158 Notes receivable, less current portion 40,022 41,940 Property, equipment and leasehold improvements, net 374,769 380,256 Contract and lease rights, net 87,183 89,015 Goodwill, net 232,562 232,562 Investment in and advances to partnerships and joint ventures 8,786 7,824 Other assets 39,105 36,616 --------- --------- Total Assets $ 945,139 $ 921,371 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt and capital lease obligations $ 47,242 $ 46,867 Accounts payable 77,180 76,964 Accrued expenses 43,957 46,807 Management accounts payable 29,922 21,643 Income taxes payable 797 -- --------- --------- Total current liabilities 199,098 192,281 Long-term debt and capital lease obligations, less current portion 166,834 159,188 Subordinated debentures 78,085 78,085 Deferred rent 23,720 24,450 Deferred income taxes 17,167 17,293 Other liabilities 17,854 14,977 --------- --------- Total liabilities 502,758 486,274 --------- --------- Minority interest 189 64 Shareholders' equity: Common stock 367 366 Additional paid-in capital 249,701 249,452 Accumulated other comprehensive income, net 4,857 879 Retained earnings 187,972 185,041 Other (705) (705) --------- --------- Total shareholders' equity 442,192 435,033 --------- --------- Total Liabilities and Shareholders' Equity $ 945,139 $ 921,371 ========= =========
-MORE- CPC Reports Fiscal First Quarter 2005 Results Page 5 Jan. 27, 2005 CENTRAL PARKING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Amounts in thousands QTD DECEMBER 31, 2004 2003 -------- -------- Cash flows from operating activities: Net earnings $ 3,480 $ 8,395 Loss from discontinued operations 2,294 567 -------- -------- Earnings from continuing operations 5,774 8,962 Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities - continuing operations: Depreciation and amortization 7,285 8,841 Equity in partnership and joint venture earnings (256) (547) Distributions from partnerships and joint ventures 827 338 Property-related gains, net (1,881) (1,242) Deferred income taxes (130) 9 Minority interest, net of tax 303 1,013 Changes in operating assets and liabilities: Management accounts receivable (14,360) (1,634) Accounts receivable - other (2,444) 4,779 Prepaid expenses (2,795) (6,100) Other assets (3,043) (5,877) Accounts payable, accrued expenses and other liabilities (2,120) (4,569) Management accounts payable 7,818 (1,300) Deferred rent (730) (747) Refundable income taxes 1,442 3,787 Income taxes payable 680 -- -------- -------- Net cash (used) provided by operating activities - continuing operations (3,630) 5,713 Net cash provided by operating activities - discontinued operations 1,094 861 -------- -------- Net cash (used) provided by operating activities (2,536) 6,574 -------- -------- Cash flows from investing activities: Proceeds from disposition of property and equipment 6,177 43,695 Purchase of equipment and leasehold improvements (2,279) (4,334) Purchase of contract and lease rights (3,679) -- Other investing activities (1,106) 2,926 -------- -------- Net cash (used) provided by investing activities (887) 42,287 -------- -------- Cash flows from financing activities: Dividends paid (549) (543) Net borrowings (repayments) under revolving credit agreement 2,500 (28,563) Proceeds from issuance of notes payable, net of issuance costs 5,506 2,025 Principal repayments on long-term debt and capital lease obligations (438) (12,039) Payment to minority interest partners -- (2,842) Proceeds from issuance of common stock and exercise of stock options 250 420 -------- -------- Net cash provided (used) by financing activities 7,269 (41,542) -------- -------- Foreign currency translation (121) (720) -------- -------- Net decrease in cash and cash equivalents 3,725 6,599 Cash and cash equivalents at beginning of period 27,628 31,572 -------- -------- Cash and cash equivalents at end of period $ 31,353 $ 38,171 ======== ========
-MORE- CPC Reports Fiscal First Quarter 2005 Results Page 6 Jan. 27, 2005 Key Financial Metrics (In thousands)
QTD Ended December 31, 2004 2003 ------- ------- Net earnings (loss) $ 3,480 $ 8,395 Interest expense 4,964 5,314 Income tax expense (benefit) 2,160 4,843 Depreciation/amortization 6,821 8,318 Minority interest 388 1,013 ------- ------- EBITDA $17,813 $27,883 ======= =======
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, minority interest, and cumulative effect in accounting changes. 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 (loss) 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 (loss) 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. -END-