Standard Parking Corporation Reports Strong 2011 Results

Standard Parking Corporation STAN -0.76% , one of the nation's leading providers of outsourced parking management, ground transportation and related services, today announced fourth quarter and full year 2011 results.

The quarter's reported earnings per share was $0.23, which included $0.09 per share for merger and acquisition related costs incurred during the quarter relating to the Company's proposed merger with Central Parking. Without these costs, the 2011 fourth quarter adjusted EPS would have been $0.32, a 10% increase over the fourth quarter of 2010. On a full-year basis, reported 2011 EPS was $1.12, a 6% increase over 2010 EPS of $1.06. The full-year 2011 results include $0.11 per share of costs related to the merger agreement with Central Parking as well as to another transaction contemplated earlier in 2011. Without these costs, the full-year 2011 adjusted EPS would have been $1.23, a 16% increase over full-year 2010. Free cash flow for the year was $28.9 million, well in excess of the previously announced guidance.

Comments

James A. Wilhelm, President and Chief Executive Officer, said, "2011 was a watershed year for our Company, as we pursued significant merger and acquisition related activity and continued to successfully execute against our underlying business plan. Gross profit for 2011 increased 2% year-over-year. Although this increase was slightly lower than we typically have experienced, 2011 results reflect the fact that some large 2010 events didn't recur in 2011, as well as the effect of some contract re-trades that occurred during the year.

"On a same location basis, gross profit was up 4% year-over-year, and paid exits at same leased locations were up 6% year-over-year. We continue to maintain tight control over G&A, which decreased 6% year-over-year excluding the merger and acquisition-related activity.

"During 2011, we completed a lot of hard work that sets the stage for 2012 to be an evolutionary year for our Company. As mentioned in our recent announcement, we anticipate closing our merger with Central Parking in the third quarter of 2012. The transaction will double our Company's size, adding more than 2,200 locations and approximately 1 million parking spaces across the U.S. We believe this transformational deal will be a catalyst for accelerated growth and that it presents a distinct value proposition for all stakeholder groups."

Recent Developments

Recent highlights include:

• The Company announced the signing of an Agreement and Plan of Merger with Central Parking Corporation. The Company believes the merger will create the preferred provider of outsourced parking facility management, maintenance, transportation and security services to institutional, municipal and commercial clients. The Company expects to generate annual cost synergies in excess of $20 million based on steps taken during the first two years after closing.
• SP Plus(R) Municipal Services was awarded a five-year contract to manage the City of Richmond's municipal parking program, which includes the management of 16 off-street parking facilities as well as on-street parking enforcement, meter collections and meter repair services.
• SP Plus(R) Transportation was awarded the contract to provide commuter shuttle bus services for The John Hancock Center in Chicago. The shuttle service transports people from the John Hancock Center and neighboring buildings to and from three downtown commuter rail stations.
• Other notable new business, as previously announced, includes:
• The award of a three-year contract to manage and operate the ground transportation system at Fort Lauderdale-Hollywood International Airport. Services are expected to commence in May 2012.
• The award of a parking management contract at Memphis International Airport, an operation encompassing over 7,000 public and employee parking spaces.
• The City of Lawrence, Massachusetts award to the Company's SP Plus(R) Municipal Services which entails on-street enforcement, monetary collection and meter repair services for meters covering over 1,000 parking spaces.

For the full year 2011, the Company repurchased approximately 461,500 shares of its common stock for $7.5 million. $12.5 million remains available under the Board's current repurchase authorization.

Fourth Quarter Results

Gross profit for the fourth quarter of 2011 decreased by 2% to $22.2 million from $22.6 million for the same period of 2010. Contributing factors were static performance at same locations resulting from the renegotiation of certain contracts, and the effect of certain anticipated location terminations.

G&A expense in the fourth quarter of 2011 increased 9% to $13.7 million from $12.6 million in the 2010 fourth quarter, but would have decreased 9%, to $11.4 million, excluding merger-related costs incurred in the 2011 fourth quarter.

Net income attributable to the Company for the fourth quarter of 2011 was $3.6 million or $0.23 per share, as compared with $4.7 million, or $0.29 per share, in the fourth quarter of 2010. The fourth quarter 2011 results reflect a $0.09 per share impact of merger-related costs pertaining to the anticipated Central Parking merger.

2012 Outlook

Given, among other things, the uncertainty as to the timing of the closing of the Central Parking merger, the Company's 2012 guidance excludes the merger's potential impact. Specific exclusions include costs being incurred during 2012 related to integration planning and activities relating to consummating the transaction, as well as any post-merger revenue and costs.

2012 earnings per share, excluding any merger related revenues and expenses, are expected to be in the range of $1.25 to $1.35, an increase of up to 10% over 2011 adjusted earnings per share of $1.23, excluding transaction related expenses.

The Company continues to expect to generate free cash flow of between $20-$25 million in 2012, excluding any merger-related revenues or expenses.

This guidance assumes approximately 15.8 million diluted shares outstanding.

About Standard Parking

Standard Parking is a leading national provider of parking facility management, ground transportation and other ancillary services. The Company, with approximately 12,000 employees, manages approximately 2,200 parking facilities, containing approximately 1.2 million parking spaces in hundreds of cities across North America, including parking-related and shuttle bus operations serving more than 60 airports.