Standard Parking Corporation Announces 2012 Third Quarter Results

Standard Parking Corporation Announces 2012 Third Quarter Results

Company Reaffirms 2012 EPS and Free Cash Flow Guidance Excluding
Merger-Related Revenue and Costs

CHICAGO, Nov. 5, 2012 (GLOBE NEWSWIRE) -- Standard Parking Corporation
(Nasdaq:STAN), a leading national provider of parking management, ground
transportation and other ancillary services, today announced 2012 third
quarter results. The Company reported third quarter 2012 earnings per share of
$0.15, including $0.14 per share of costs incurred during the quarter relating
to the Company's recent merger with Central Parking. On a merger-adjusted
basis that excludes merger-related expenses, the quarter's earnings per share
were $0.29, compared to $0.39 for the 2011 third quarter. Earnings per share
for the first nine months of 2012 were $0.55, including $0.43 per share of
merger-related costs. Merger-adjusted earnings per share for the 2012 year to
date period were $0.98, compared to $0.92 for the first nine months of 2011.
Merger-adjusted free cash flow for the first nine months of 2012 was $16.7
million as compared to $9.5 million of merger-adjusted free cash flow
generated during the first nine months of 2011.

Comments

James A. Wilhelm, the Company's President and Chief Executive Officer, stated,
"We're very pleased that our merger with Central Parking closed as expected in
early October, and we are making great progress integrating the two
businesses. Because our original guidance for the year anticipated many of the
factors that are impacting our core business, we still expect to meet our EPS
guidance range of $1.25 - $1.35 for the full year, again without the impact of
any costs or revenues related to the Central Parking merger."

Wilhelm added, "The overall uncertain macro economic environment continues to
negatively impact our business, and paid exits at same location leases in this
year's third quarter were down modestly compared to last year. We saw a
decrease in third quarter same location gross profit because of the five large
contract retrades that occurred at the end of last year as well as an
unfavorable change in employment practices claims estimates. Excluding these
two items, underlying same location gross profit would have increased 2%.
We're pleased to note that our location and operating profit retention rates
remain strong and unchanged from this year's second quarter, at 90% and 96%
respectively."

Wilhelm concluded, "As we look towards 2013, we're not anticipating dramatic
economic improvement in the near term, and are focused on the factors that are
within our control, namely the successful integration of the Standard Parking
and Central Parking businesses and achieving the planned merger-related
synergies we've identified to maximize the efficient operation of the
Company."

Third Quarter Operating Results

Revenue of $92.2 million for the third quarter of 2012, before reimbursed
management contract revenue, increased by 14% compared to $80.8 million in the
third quarter of 2011. Both lease and management revenue contributed to the
solid revenue growth.

Gross profit decreased 11% in the 2012 third quarter to $21.7 million, from
$24.2 million in the same period last year. The majority of the gross profit
decrease for the quarter resulted from an unfavorable swing in insurance
reserve and employment claims estimates. The Company reported an unfavorable
$0.7 million change in insurance reserve estimates in the third quarter of
this year as compared to a $1.1 million favorable change in insurance reserve
estimates in the third quarter of last year, a swing of $1.8 million. The
unfavorable swing in employment claims estimates for the third quarter was
$0.4 million. Also contributing to the gross profit decrease was the impact of
last year's contract retrades. Excluding these items, gross profit would have
increased 3% in the third quarter of this year as compared to the same period
of last year.

General and administrative (G&A) expenses, excluding merger-related costs of
$3.0 million, were $10.9 million for the 2012 third quarter, a decrease of 5%
compared to $11.5 million on the same basis for the third quarter of 2011.
This decrease was due to lower performance based compensation expense in the
third quarter of 2012.

Net income attributable to the Company for the 2012 third quarter, adjusted to
eliminate merger-related costs, was $4.7 million, or $0.29 per share, compared
to a merger-adjusted $6.2 million, or $0.39 per share, for the same period of
2011. Including the quarter's $0.14 per share of merger-related costs and
related tax impacts, the 2012 third quarter net income attributable to the
Company was $2.4 million, or $0.15 per share, as compared to $6.0 million, or
$0.37 per share in the third quarter of 2011.

The Company generated $3.3 million of merger-adjusted free cash flow during
the third quarter of 2012 before the cash flow impact of $3.6 million from
merger-related costs, as compared with a negative $6.8 million of
merger-adjusted free cash flow generated during the third quarter of 2011,
which was before a $0.4 million cash flow impact from merger-related costs. 

Recent Developments

Noteworthy contract activity during the quarter included:

Dayton International Airport awarded Standard Parking a five year management
contract for the Airport's public parking facilities, valet parking, shuttle
bus and taxi starter services, commencing November 1^st. The 7,500 space
parking operation encompasses a multi-level parking structure, several surface
lots, and a curbside valet operation. Standard Parking will provide a fleet of
new buses to support the Airport's shuttle services, allowing for an enhanced
customer experience.

Jacksonville International Airport awarded Standard Parking a five year
contract to provide valet parking services. Standard commenced operation of
this high-profile valet service on October 1st. Additional services will
include on-site vehicle washing and detailing.

On October 1^st, SP Plus^® Municipal Services began providing on-street
parking enforcement and citation processing services for the City of Oxford,
Miss. The Company provides its services for 407 on-street parking spaces and
also issues citations in connection with handicapped, loading zone and fire
hydrant parking restrictions.

Millennium Knickerbocker Hotel and Omni Hotel, both premier hotels in Chicago,
awarded SP Plus^® Hotel Services a contract to manage their valet parking
services, which collectively park more than 30,000 vehicles per year for hotel
visitors and guests.

Nine Month Results

Gross profit for the first nine months of 2012 increased 2% to $68.1 million
from $66.4 million for the same period of 2011, despite the impact of the
contract retrades and the unfavorable swing in changes to insurance reserve
and employment claims estimates.

G&A expenses for the first nine months of 2012, excluding $10.5 million of
merger-related costs, decreased 2% as compared to the same period last year on
the same merger-adjusted basis.

Merger-adjusted net income attributable to the Company was $15.6 million for
the nine months of 2012 as compared to $14.8 million for the first nine months
of 2011.Excluding $0.43 per share for merger-related costs and associated tax
impacts from 2012, earnings per share were $0.98 for the nine months of 2012
as compared to $0.92 per share for the first nine months of 2011, which
excludes $0.03 per share for merger and acquisition related costs, an increase
of 7%.

For the first nine months of 2012, merger-adjusted free cash flow was $16.7
million before the cash flow impact of $9.6 million from merger-related
costs.For the first nine months of 2011, merger-adjusted free cash flow was
$9.5 million before the cash flow impact of $0.7 million from merger and
acquisition related costs.

Reaffirms 2012 Outlook

Based on year-to-date results, the Company reaffirms its full-year adjusted
earnings per share guidance in the range of $1.25 to $1.35 and its full-year
adjusted free cash flow guidance in the range of $20 to $25 million.These
numbers exclude year-to-date costs, as well as future revenue and costs,
related to the consummated Central Parking merger.

Conference Call

The Company's quarterly earnings conference call will be held at 10:00 a.m.
(Central Time) on Tuesday, November 6, 2012 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 at least 15 minutes early 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 the Standard
Parking website and can be accessed for 30 days after the call.

About Standard Parking

Standard Parking is a leading national provider of parking facility
management, ground transportation and other ancillary services.Including
Central Parking Corporation, its wholly-owned subsidiary, the Company has
approximately 26,000 employees and manages more than 4,200 facilities with
more than 2.2 million parking spaces in hundreds of cities across North
America. The operations include parking-related and shuttle bus operations
serving more than 75 airports. USA Parking System, a wholly-owned subsidiary
of Central Parking, is one of the premier valet operators in the nation with
more four and five diamond luxury properties, including hotels and resorts,
than any other valet competitor.

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 release. Standard Parking's annual reports filed
on Form 10-K, its quarterly reports on Form 10-Q and its current reports on
Form 8-K are available on the Internet at www.sec.gov and can also be accessed
through the Investor Relations section of the Company's website.

Cautionary Note Regarding Forward-Looking Statements

This release and the attached tables contain forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995, including the
statement by Mr. Wilhelm regarding 2012 financial guidance, the statements
under the caption "Reaffirms 2012 Outlook" and other statements regarding
expectations, beliefs, plans, intentions and strategies of the Company. The
Company has tried to identify these statements by using words such
as"expect," "anticipate," "believe," "could," "should," "estimate," "expect,"
"intend," "may," "plan," "guidance" and "will" and similar terms and phrases,
but such words, terms and phrases are not the exclusive means of identifying
such statements. These forward-looking statements are made based on
management's expectations and beliefs concerning future events and are subject
to uncertainties and factors relating to operations and the business
environment, all of which are difficult to predict and many of which are
beyond management's control. Actual results, performance and achievements
could differ materially from those expressed in, or implied by, these
forward-looking statements due to a variety of risks, uncertainties and other
factors, including, but not limited to, the following: the Company's ability
to integrate Central Parking into the business of the Company successfully and
the amount of time and expense spent and incurred in connection with the
integration; the risk that the economic benefits, cost savings and other
synergies that the Company anticipates as a result of the Central Parking
merger are not fully realized or take longer to realize than expected; the
Company's substantially increased indebtedness incurred in connection with the
Central Parking merger, which may reduce available cash flow, increase
vulnerability to adverse economic conditions, and limit flexibility in
planning for, or reacting to, changes in or challenges related to the
Company's business; unanticipated Central Parking merger and integration
expenses; other losses, or renewals on less favorable terms, of management
contracts and leases; adverse litigation judgments or settlements; adverse
impact to the Company's operations in areas damaged by Hurricane Sandy;
changes in general economic and business conditions or demographic trends; the
loss of customers, clients or strategic alliances as a result of the Central
Parking merger; the effect on the Company's strategy and operations due to
changes to the Board of Directors that occurred upon the completion of the
merger; the impact of the divestitures of management contracts and leases
required by the agreement entered into by the Company with the Department of
Justice in connection with the Central Parking merger; the impact of public
and private regulations; financial difficulties or bankruptcy of major
clients; intense competition; insurance losses that are worse than expected or
adverse events not covered by insurance; labor disputes; extraordinary events
affecting parking at facilities that the Company manages, including emergency
safety measures, military or terrorist attacks, cyber terrorism and natural
disasters; the risk that state and municipal government clients sell or enter
into long-term leases of parking-related assets to competitors or clients of
our competitors; uncertainty in the credit markets; availability, terms and
deployment of capital; the Company's ability to obtain performance bonds on
acceptable terms; and the impact of Federal health care reform.

For a detailed discussion of factors that could affect the Company's future
operating results, please see the Company's filings with the Securities and
Exchange Commission, including the disclosures under "Risk Factors" in those
filings. Except as expressly required by the federal securities laws, the
Company undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, changed circumstances or
future events or for any other reason.

Use of Non-GAAP Financial Measures

The Company defines free cash flow as net cash from operating activities, less
cash used for investing activities (exclusive of acquisitions), plus the
effect of exchange rate changes on cash and cash equivalents.The Company
believes that the presentation of free cash flow provides useful information
regarding its recurring cash provided by operating activities after certain
expenditures. It also demonstrates the Company's ability to execute its
financial strategy.The Company's presentation of free cash flow has material
limitations.The Company's free cash flow does not represent its cash flow
available for discretionary expenditures because it excludes certain
expenditures that are required or to which the Company has committed, such as
debt service requirements. The Company's definition of free cash flow may not
be comparable to similarly titled measures presented by other companies.

In addition, in this press release, the Company has presented non-GAAP
measures of its G&A, net income, earnings per share and free cash flow for the
third quarter and first nine months of 2012 and comparable periods of 2011
that have been adjusted to exclude costs incurred with respect to the
consummated Central Parking merger, as well as a large acquisition that was
contemplated in 2011.As the Company does not routinely engage in transactions
of the magnitude of the Central Parking merger or the earlier contemplated
transaction, and consequently does not regularly incur transaction-related
costs with correlative size, the Company believes presenting G&A, net income,
EPS and free cash flow excluding merger-related costs provides investors with
additional measures of the Company's underlying operating performance. G&A
excluding merger-related costs (also referred to as merger-adjusted G&A), net
income excluding merger-related costs (also referred to as merger-adjusted net
income), and EPS excluding merger-related costs (also referred to as
merger-adjusted EPS) should not be considered as alternatives to, or more
meaningful indicators of, the Company's operating performance than G&A, net
income attributable to the Company, or EPS as determined in accordance with
GAAP. In addition, the Company's merger-adjusted G&A, merger-adjusted net
income, merger-adjusted EPS and merger-adjusted free cash flow may not be
comparable to similarly titled measures of another company.

For reconciliations of these non-GAAP financial measures to the most directly
comparable GAAP financial measures, see the accompanying tables to this
release.


STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share and per share data)

                                                 September30, December31,
                                                  2012           2011
                                                 (Unaudited)    (seeNote)
ASSETS                                                          
Current assets:                                                 
Cash and cash equivalents                         $10,386        $13,220
Notes and accounts receivable, net                61,175         46,396
Prepaid expenses and supplies                     2,604          2,419
Deferred taxes                                    2,745          2,745
Total current assets                              76,910         64,780
Leasehold improvements, equipment and             16,646         16,732
construction in progress, net
Advances and deposits                             4,131          5,261
Long-term receivables, net                        15,398         14,177
Intangible and other assets, net                  10,387         9,420
Cost of contracts, net                            13,030         14,286
Goodwill                                          132,694        132,417
Total assets                                      $269,196       $257,073
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current liabilities:                                            
Accounts payable                                  $51,501        $44,747
Accrued and other current liabilities             37,565         41,304
Current portion of long-term borrowings           633            754
Total current liabilities                         89,699         86,805
Deferred taxes                                    16,488         12,981
Long-term borrowings, excluding current portion   72,658         81,259
Other long-term liabilities                       30,332         26,386
Standard Parking Corporation's stockholders'                    
equity:
Preferred stock, par value $.01 per share;        —              —
5,000,000 shares authorized and no shares issued
Common stock, par value $.001 per share;
50,000,000 shares authorized; 15,668,128 and
15,464,864 shares issued and outstanding as of    15             15
September 30, 2012 and December 31, 2011,
respectively
Additional paid-in capital                        94,071         92,662
Accumulated other comprehensive loss              (110)          (318)
Accumulated deficit                               (33,902)       (42,632)
Total Standard Parking Corporation stockholders'  60,074         49,727
equity
Noncontrolling interest                           (55)           (85)
Total equity                                      60,019         49,642
Total liabilities and stockholders' equity        $269,196       $257,073



STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for share and per share data, unaudited)

              ThreeMonthsEnded                    NineMonthsEnded
              September30,2012 September30,2011 September30,2012 September30,2011
Parking
services                                                             
revenue:
Lease          $42,969            $37,501            $122,927           $109,899
contracts
Management     49,226             43,259             141,562            131,556
contracts
              92,195             80,760             264,489            241,455
Reimbursed
management     100,958            106,365            309,055            307,615
contract
revenue
Total revenue  193,153            187,125            573,544            549,070
Cost of
parking                                                              
services:
Lease          40,108             34,049             113,495            101,834
contracts
Management     30,409             22,489             82,919             73,196
contracts
              70,517             56,538             196,414            175,030
Reimbursed
management     100,958            106,365            309,055            307,615
contract
expense
Total cost of
parking        171,475            162,903            505,469            482,645
services
Gross profit:                                                        
Lease          2,861              3,452              9,432              8,065
contracts
Management     18,817             20,770             58,643             58,360
contracts
Total gross    21,678             24,222             68,075             66,425
profit
General and
administrative 13,846             11,814             43,759             34,593
expenses
Depreciation
and            1,723              1,683              5,258              4,893
amortization
Operating      6,109              10,725             19,058             26,939
income
Other expenses                                                       
(income):
Interest       1,093              1,197              3,355              3,546
expense
Interest       (61)               (297)              (266)              (470)
income
              1,032              900                3,089              3,076
Income before  5,077              9,825              15,969             23,863
income taxes
Income tax     2,623              3,760              7,007              9,305
expense
Net income     2,454              6,065              8,962              14,558
Less: Net
income
attributable   75                 89                 232                260
to
noncontrolling
interest
Net income
attributable
to Standard    $2,379             $5,976             $8,730             $14,298
Parking
Corporation
Common stock                                                         
data:
Net income per                                                       
share:
Basic          $0.15              $0.38              $0.56              $0.91
Diluted        $0.15              $0.37              $0.55              $0.89
Weighted
average shares                                                       
outstanding:
Basic          15,668,129         15,704,837         15,632,817         15,776,833
Diluted        15,928,685         16,034,330         15,883,535         16,116,136



STANDARD PARKING CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except for share and per share data, unaudited)

                                        NineMonthsEnded
                                        September30,2012 September30,2011
Operating activities:                                      
Net income                               $8,962             $14,558
Adjustments to reconcile net income to                     
net cash provided by operations:
Depreciation and amortization            5,215              4,935
Loss (gain) on sale and abandonment of   56                 (49)
assets
Amortization of debt issuance costs      446                478
Non-cash stock-based compensation        1,114              1,724
Excess tax benefit related to stock      (221)              (148)
option exercises
Provisions for losses on accounts        229                33
receivable
Deferred income taxes                    3,507              2,857
Change in operating assets and           (8,317)            (11,339)
liabilities
Net cash provided by operating           10,991             13,049
activities
Investing activities:                                      
Purchase of leasehold improvements and   (3,114)            (2,907)
equipment
Cost of contracts purchased              (572)              (395)
Proceeds from sale of assets             15                 82
Capitalized interest                     (12)               (40)
Contingent purchase payments             (93)               (293)
Net cash used in investing activities    (3,776)            (3,553)
Financing activities:                                      
Proceeds from exercise of stock options  154                143
Repurchase of common stock               —                  (5,031)
Earn-out payments made                   (1,525)            —
Tax benefit related to stock option      221                148
exercises
Payments on senior credit facility       (8,200)            (3,250)
Distribution to noncontrolling interest  (202)              (255)
Payments on long-term borrowings         (108)              (102)
Payments for debt issuance costs         (30)               (30)
Payments on capital leases               (414)              (399)
Net cash used in financing activities    (10,104)           (8,776)
Effect of exchange rate changes on cash  55                 (406)
and cash equivalents
Increase (decrease) in cash and cash     (2,834)            314
equivalents
Cash and cash equivalents at beginning   13,220             7,305
of period
Cash and cash equivalents at end of      $10,386            $7,619
period
Supplemental disclosures:                                  
Cash paid during the period for:                           
Interest                                 $2,415             $3,151
Income taxes                             3,179              4,975



STANDARD PARKING CORPORATION
CALCULATION OF MERGER-ADJUSTED G&A, MERGER-ADJUSTED NET INCOME AND
MERGER-ADJUSTED EPS
(in thousands, except for share and per share data, unaudited)

                                      Three Months Ended  Nine Months Ended
                                      September September September September
                                       30, 2012  30, 2011  30, 2012  30, 2011
General and administrative expenses,   $13,846   $11,814   $43,759   $34,593
as reported
Merger and acquisition related costs   (2,978)  (334)    (10,537) (782)
Merger-adjusted G&A                    $10,868   $11,480   $33,222   $33,811
                                                                 
Net income attributable to Standard    $2,379    $5,976    $8,730    $14,298
Parking Corporation, as reported
Merger and acquisition related costs   2,313     206       6,828    477
(after tax)
Merger-adjusted net income
attributable to Standard Parking       $4,692    $6,182    $15,558   $14,775
Corporation
                                                                 
EPS, as reported                       $0.15     $0.37     $0.55     $0.89
EPS attributable to merger and         $0.14     $0.02     $0.43     $0.03
acquisition related costs
Merger-adjusted EPS                    $0.29     $0.39     $0.98     $0.92



STANDARD PARKING CORPORATION
FREE CASH FLOW
(in thousands, unaudited)

                                      Three Months Ended  NineMonths Ended
                                      September September September September
                                       30, 2012  30, 2011  30, 2012  30, 2011
Operating income                       $6,109    $10,725   $19,058   $26,939
Depreciation and amortization expense  1,723     1,683     5,258     4,893
Non-cash compensation                  251       411       1,114     1,724
Income tax paid                        (366)    (1,283)  (3,179)  (4,975)
Income attributable to noncontrolling  (75)     (89)     (232)    (260)
interest
Change in assets and liabilities       (5,661)  (16,415) (8,775)  (12,730)
Purchase of leaseholds, equipment and
cost of contracts and contingent       (1,637)  (1,260)  (3,791)  (3,635)
purchase payments
Operating cash flow                    $344      ($6,228)  $9,453    $11,956
Cash interest paid (before payment of  606      (1,016)  (2,385)   (3,121)
debt issuance costs):
Free cash flow ^ (1)                   ($262)    ($7,244)  $7,068    $8,835
Decrease (increase) in cash and cash   (1,331)  4,166   2,834    (314)
equivalents
Free cash flow, net of change in cash  ($1,593)  ($3,078)  $9,902    $8,521
                                                                 
Sources (Uses) of cash:                                           
Proceeds from (payments on)senior     $1,800    $7,950    ($8,200)  ($3,250)
credit facility
(Payments) on other borrowings         (177)    (170)    (522)    (501)
(Payments) of debt issuance costs      (30)     (30)     (30)     (30)
Proceeds from exercise of stock        --       --       154       143
options
Tax benefit related to stock option    --      (72)     221      148
exercises
(Repurchase) of common stock           --       (4,600)  --       (5,031)
(Payments) on earn-out                 --       --       (1,525)  --
(Payments) on acquisitions             --       --       --       --
Total sources (uses) of cash           $1,593    $3,078    ($9,902)  ($8,521)


^(1)Reconciliation of Free Cash Flow and Adjusted Free Cash     
Flow to Consolidated Statements of Cash Flow
                                                              
                                  Nine Months    Six Months     Three Months
                                   Ended          Ended          Ended
                                  September 30,  June 30, 2012  September 30,
                                   2012                          2012
Net cash provided by operating     $10,991        $9,680         $1,311
activities
Net cash (used in) investing       (3,776)       (2,139)       (1,637)
activities
Acquisitions                       --            --            --
Distribution to noncontrolling     (202)         (128)         (74)
interest
Effect of exchange rate changes on 55            (83)          138
cash and cash equivalents
Free cash flow                     $7,068         $7,330         ($262)
Free cash flow used for merger and 9,620         6,016         3,604
acquisition related costs
Merger-adjusted free cash flow     $16,688        $13,346        $3,342
                                                              
                                                              
                                  Nine Months    Six Months     Three Months
                                   Ended          Ended          Ended
                                  September 30,  June 30, 2011  September 30,
                                   2011                          2011
Net cash provided by operating     $13,049        $18,502        ($5,453)
activities
Net cash (used in) investing       (3,553)       (2,296)       (1,257)
activities
Acquisitions                       --            --            --
Distribution to noncontrolling     (255)         (174)         (81)
interest
Effect of exchange rate changes on (406)         47            (453)
cash and cash equivalents
Free cash flow                     $8,835         $16,079        ($7,244)
Free cash flow used for merger and 669           225           444
acquisition related costs
Merger-adjusted free cash flow     $9,504         $16,304        ($6,800)



STANDARD PARKING CORPORATION
LOCATION COUNT
                                                         
                      September 30,      December 31,      September 30,
                       2012               2011              2011
Managed facilities     1,962             1,953            1,970
Leased facilities      199                201               212
Total facilities       2,161              2,154             2,182
                                                         
Definition:The Company's year-over-year same location gross profit statistic
does not include the results of the Other segment which consists of ancillary
revenue and insurance reserve adjustments related to prior years which are not
specifically identifiable to an operating location.

CONTACT: Michael K. Wolf
         Executive Vice President and CAO
         Standard Parking Corporation
         (312) 274-2070
         mwolf@standardparking.com

Standard Parking Corporation
 
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