Standard Parking Corporation (Nasdaq:STAN), one of the nation's leading providers of parking management, ground transportation and other ancillary services, today announced first quarter 2011 net income attributable to the Company of $3.8 million, or $0.23 per share, an increase of 28% from $0.18 earnings per share for the first quarter of 2010.
The Company generated $6.0 million of free cash flow in the quarter as compared with $1.4 million generated in the first quarter of 2010. Based on the first quarter results, the Company is affirming its 2011 full-year performance expectations for earnings per share in the range of $1.10 - $1.20 and for free cash flow of between $15 - $20 million.
CommentsJames A. Wilhelm, President and Chief Executive Officer, said, "We have just wrapped up a solid first quarter that exceeded both internal and external expectations. Despite lingering uncertainty about our nation's economic recovery, we're pleased with the quarter's underlying organic growth, as same location and total gross profit increased 5% for the quarter. Our location and operating profit retention remain strong at 91% and 96%, respectively. It's also encouraging to note that paid exits at same location leases increased 11% over the first quarter of 2010, with growth across most vertical markets."
Wilhelm continued, "I'd like to briefly highlight some of our first quarter operating successes and new business wins. Our SP Plus Gameday team continued its track record of delivering outstanding travel demand management services at several high-profile events, including Super Bowl XLV, several NCAA bowl games and the NHL All-Star game. In February, SP Plus University Services began providing parking management, customer service and parking enforcement services at Emory University in Atlanta, which already has noted significant improvement in revenue and customer service feedback. New business for our SP Plus Transportation service line includes the commencement of shuttle bus services for a large hospital group in Hawaii for whom we've been providing our parking management services, a win that we believe will open doors at other hospitals as well. Finally, we expanded our geographic footprint into Salt Lake City with six new locations, which we expect will serve as a platform for future growth in this previously untapped market."
Wilhelm concluded by stating, "While general uncertainty regarding the strength of the economic recovery now is clouded by gas prices exceeding $4.00 per gallon in many parts of the country, we're pleased that our first quarter exceeded expectations and that we're able to reiterate our full-year earnings guidance of $1.10 to $1.20 per share and free cash flow guidance of $15 million to $20 million."
First Quarter Operating ResultsRevenue of $81.2 million for the first quarter of 2011, excluding reimbursement of management contract expense, was an increase of 11% compared to $73.2 million in the first quarter of 2010, with both lease and management revenue contributing to the growth.
Gross profit in the quarter increased by 5% to $20.2 million from $19.2 million a year ago. Significantly higher snow removal costs in the current year first quarter were offset by lower legal-related expenses as compared to the 2010 first quarter. Growth in same location gross profit of 5% contributed to the overall growth in gross profit.
General and administrative expense in the quarter decreased by 3% to $11.2 million from $11.6 million a year ago, primarily due to cost savings resulting from process efficiencies.
Net income attributable to the Company was $3.8 million, or $0.23 per share, for the first quarter versus $2.8 million, or $0.18 per share, for the same period of 2010, an increase of 28% in EPS.
The Company generated $6.0 million of free cash flow during the first quarter, as compared with $1.4 million in the first quarter of 2010. Favorable working capital movements contributed to the increase in free cash flow. Substantially all of the Company's free cash flow of $19.9 million for the twelve months ending in March 2011 was used to pay down total indebtedness.
Recent DevelopmentsAt the Company's annual meeting held on April 29, 2011, our shareholders voted in accordance with the Board's recommendations:
Providing an advisory vote in favor of the 2010 compensation of our named executive officers;
Selecting "one year" in an advisory vote on the frequency of advisory votes on the annual compensation of our named executive officers;
Voting for the election of the proposed slate of five directors; and
Ratifying the appointment of Ernst & Young LLP as the Company's auditors for fiscal 2011.