CHICAGO, Nov. 2, 2009 (GLOBE NEWSWIRE) -- Standard Parking Corporation (Nasdaq:STAN), one of the nation's leading providers of parking management, ground transportation and other ancillary services, today announced third quarter 2009 earnings of $0.27 per share, a decline of 7% from the third quarter of 2008. The Company's year-over-year growth in third quarter EPS was 25% after adjusting for certain insurance and legal related items and a prior year gain. Year-to-date free cash flow of $11 million is in line with the Company's full-year expectation of $15 million to $20 million.

Comments

James A. Wilhelm, President and Chief Executive Officer, said, "We are encouraged by our third quarter results. In particular, our location retention rate increased to 90%, reinforcing our belief that our clients recognize the added value we bring to their operations."

Wilhelm continued, "As we've noted in the past, our business model is diversified in terms of geography and the sectors of the economy represented by our clients and is based predominantly on fixed-fee management contracts, providing us with a measure of protection against economic downturns. We continue to experience some softness across our lease and reverse management portfolio in markets that tend to be more susceptible to discretionary consumer spending. However, we are encouraged by recent trends and remain focused on our long-term strategic goals, which include both organic growth and growth through acquisition, such as our third quarter purchase of the Gameday event, transportation and traffic management business and its Click and Park(SM) online parking reservation product. Our strong financial position and our experienced, proven management team should enable us to continue to deliver solid results in these tough economic times while building toward higher levels of sustainable growth in the future."

Third Quarter Operating Results

Revenue for the third quarter of 2009, excluding reimbursed management contract expense, decreased by $0.7 million to $74.8 million from $75.5 million in the year-ago period, due to lower revenue at leased locations. On a sequential basis, revenue increased almost 3% over the second quarter of 2009 and paid exits at leased same locations increased modestly.

Gross profit in the 2009 third quarter declined by 9% to $21.2 million from $23.5 million a year ago. Favorable changes in insurance reserve estimates, an insurance dividend and a gain from the sale of certain contract rights in the third quarter of 2008 accounted for over two-thirds of the year-over-year decline, as these factors either did not recur in the third quarter of 2009 or were not significant. Additionally, certain legal-related expenses incurred during the 2009 third quarter accounted for the remaining one-third of the year-over-year decline in gross profit. The underlying gross profit, after adjusting for these items, was essentially unchanged on a year-on-year basis. On a sequential basis, reported gross profit was up 6% from the second quarter of this year, aided in part by the Gameday acquisition in July.

General and administrative expense ("G&A") decreased by 6% to $11.3 million from $12.0 million in the 2008 third quarter, primarily as a result of steps taken this year to reduce certain compensation expenses. On a sequential quarter basis, G&A expense increased 9% over the second quarter of 2009, driven primarily by the Gameday acquisition and the Company's annual grant of stock to members of its Board of Directors. As a result of the foregoing, operating income was $8.4 million, compared with $9.9 million in the year ago quarter. Lower interest rates resulted in a $0.2 million decrease in year-over-year interest expense for the third quarter.

Net income attributable to the Company for the 2009 third quarter was $4.2 million, or $0.27 per share, versus $5.1 million, or $0.29 per share, for the same period of 2008, a decline of 7% in EPS. The Company's year-over-year growth in third quarter EPS was 25% after adjusting for certain insurance and legal related items and a prior year gain.

The Company generated $6.4 million of free cash flow during the third quarter of 2009, as compared with $1.3 million generated in the third quarter of 2008. The year-over-year increase was attributable primarily to the timing of fluctuations in the movement of working capital. The Company continues to expect free cash flow to be in a range of $15 - $20 million for the full year.

Recent Developments

New Business

The Company was awarded a parking management contract for the Boston University Medical Center. This win expands the Company's relationship with the University where we also manage their main campus parking. The Medical Center operation consists of over 3,000 spaces spread across nine locations.

The Company was awarded a parking management contract for Sky View Parc, a multi-million square foot retail and condominium complex in Flushing, New York. The parking operation will consist of a 2,000 space self-park facility as well as a 400 space garage that will provide first-class valet service to the condo residents. With the addition of Sky View Parc, the Company will be the parking operator at three of New York's largest retail centers.

The Company commenced its parking management duties for 2,200 parking spaces at Union Station in Kansas City, a converted historic train terminal that now houses restaurants, retail, theatres, a planetarium and Science City Children's Museum.

The Company also was officially awarded the parking and shuttle management contract at the Hartsfield-Jackson Atlanta International Airport during the third quarter and commenced operations on October 1.

Changes to Board of Directors

Several changes recently occurred to the Company's Board of Directors.

  *  Timothy J. White, an affiliate of the Company's largest
     shareholders, was elected to the Board of Directors.
  *  At the Company's annual shareholder meeting in July, the total
     number of directors elected was reduced from nine to six.
  *  Robert S. Roath was elected non-executive Chairman of the Board,
     having served as a director and Chairman of the Company's
     Audit Committee since its May 2004 IPO.  Formerly the Chief
     Financial Officer of RJR Nabisco, Inc., he also serves as a
     director of Interdigital Communications Corp.

S-3 Shelf Registration

During the 2009 third quarter, the Company filed a shelf registration of 7.6 million shares of its common stock owned by its largest shareholders. The registration subsequently was declared effective by the Securities and Exchange Commission.

Year-to-Date Results

Revenue for first nine months of 2009, excluding reimbursed management contract expense, decreased by 2% to $220.8 million from $225.5 million in 2008.

Gross profit for the first nine months of 2009 decreased by 11% to $61.0 million from $68.7 million for the same period of 2008. Two percentage points of the year-over-year decline is largely attributable to the continuing impact of the economic downturn on certain areas of the business that are more sensitive to discretionary spending than our predominant fixed-fee contract business. The remaining 9% of the year-over-year decline is attributable to the Company's receipt in 2008 of $1.6 million in settlement proceeds relating to its Hurricane Katrina insurance claim, changes in insurance loss reserve estimates relating to prior years, a 2008 insurance dividend, a gain from the sale of certain assets in 2008, and certain 2009 legal-related expenses.

General and administrative expenses for the first nine months of 2009 decreased 3% to $34.4 million from $35.5 million a year earlier as steps taken to reduce certain compensation expenses were partially offset by expenses related to: (1) the transfer of shares by the Company's former majority shareholder; (2) certain other legal-related expenses in 2009; and (3) six additional months of costs related to the July 2008 restricted stock unit grant to senior management. Adjusting for these three items, general and administrative expenses for the first nine months of 2009 would have decreased by 12% compared to the first nine months of 2008.

As a result of the foregoing, operating income for the first nine months of 2009 decreased by 23% to $22.2 million from $28.7 million in the same period of 2008. Operating income for the first nine months of 2009 would have increased by 11% compared to the first nine months of 2008 after adjusting for the above-mentioned insurance and legal items, the impact of the timing of the RSU grant, the gain on the sale of certain contract rights and the costs attributable to the former majority shareholder's transfer of its stake in the Company.

Net income attributable to the Company decreased by 26% to $10.8 million for the first nine months of 2009 as compared with $14.7 million for the first nine months of last year. On a per share basis, the year-over-year decrease from $0.81 last year to $0.69 in 2009 was only 15% because of fewer shares outstanding due to share repurchases by the Company. Net income attributable to the Company for the first nine months of 2009 would have increased by 14% and earnings per share would have increased by 32% compared to the first nine months of 2008 after adjusting for the above-mentioned insurance and legal items, the impact of the timing of the RSU grant, the gain on the sale of certain contract rights and the costs attributable to the former majority shareholder's transfer of its stake in the Company.

The Company generated $11.0 million of free cash flow during the first nine months of 2009 as compared with $15.5 million in the same period of 2008.

Maintains Full-Year Guidance

The Company is expecting full year earnings per share to be at the low end of its previously announced guidance range of $1.05 - $1.11 per share. This range continues to exclude the $0.04 per share charge incurred in the first nine months of this year for costs associated with the transfer of shares by the Company's former majority shareholder and does not anticipate any additional costs related to the transfer or subsequent sale of those shares. Free cash flow is expected to be in the range of $15 - $20 million.

Conference Call

The Company's quarterly earnings conference call will be held at 10:00 a.m. (CT) on Monday, November 2, 2009, and will be available live and in replay to all analysts/investors through a webcast service.